IFC, a member of the World Bank Group, is helping Armenia’s ACBA-Credit Agricole Bank expand microfinance and lending to small and medium-sized companies, including those operating in agribusiness sector, supporting agriculture and overall economic growth in the country. IFC will provide a $20 million loan to ACBA-Credit Agricole Bank, Armenia’s largest bank by total assets, and a leading microfinance provider with a strategic focus on the agribusiness sector. IFC’s loan will enable the bank to provide its clients more term financing, which has become scarce as a result of the recent financial crisis. The financing will directly benefit farmers and small companies in the vulnerable agribusiness sector. “This new loan from IFC will enhance our market position and will enable us to further develop our strategy in lending to micro, small and medium-sized businesses, particularly in the agricultural sector,” said Stepan Gishyan, CEO of ACBA-Credit Agricole Bank. “We are sure that such lending is one of the main factors for economic development and we are pleased that IFC cooperates with us in this field.” “The agriculture sector is the largest employer in Armenia, and has been negatively affected by the crisis and by adverse weather conditions last year,” said Thomas Lubeck, IFC Regional Head for the Caucasus. “Our cooperation with this strategic agribusiness lender will enable us to reach more micro, small, and medium enterprises and agribusiness sector companies in the underserved regions outside the capital, helping improve access to finance and sustain jobs in the aftermath of the crisis.” IFC partnered with ACBA Credit Agricole Bank in 2003 to establish ACBA Leasing, the first leasing company in Armenia. IFC invested equity and provided a long-term senior loan to help establish capital for ACBA Leasing. In 2010, IFC provided another $3 million loan to ACBA Leasing to help provide leasing of capital goods to small and medium enterprises.

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