Microfinance Focus, November 9, 2011: European Bank for Reconstruction (EBRD) lends a syndicated loan of USD 12 million to micro, small and medium-sized enterprises (MSME) focussed Araratbank in Armenia.

VDK spaarbank‘s microfinance portfolio, managed by Incofin IM, contributes USD 3 million in the syndicated loan of EBRD. The other participants are the Russian OJSC Promsvyazbank and the Lebanese Byblos Bank S.A.L.

Araratbank is the 10th largest bank in Armenia by total assets and 5th largest network in Armenia. The bank benefits from EBRD’s technical support in terms of risk management and governance, establishing a strong base for the bank’s further development.

This transaction will enable the bank to further develop its lending operations to MSMEs in Armenia including rural and remote areas, which have still limited access to banking services.

Incofin’s Rural Impulse Fund I has also provided an additional USD 250,000 to microfinance institution ‘OXUS Tajikistan’ and committed to rollover its current outstanding loan of USD 750,000, bringing its total investment to USD 1 million. OXUS Tajikistan and Incofin have been partnering since 2008.