ARKA News Agency, Armenia Nov 14 2005 YEREVAN, November 14. /ARKA/. In Yerevan today, USAID announced its contribution of $1.5 million to fund consultants providing expert technical advice to Armenian banks to help them improve their small business lending practices. Additional technical support amounting to ~H300,000 is being provided by the multi-donor Early Transition Countries (ETC) Fund which supports the EBRD's increasing activities in its poorest countries of operation. Appropriate memorandum was signed today in Yerevan between EBRD and USAID. Head of the EBRD Yerevan Office, Michael Weinstein, said at the ceremony of signing the memorandum that the money given for technical assistance will help local lenders to better understand and assess clients' prospects and thus to reduce borrowing bottlenecks such as collateral requirements. In his words, the insufficient information banks received about potential creditors leads to demanding great collaterals and, as a result, to high risk of default in receiving the money. After introducing new technologies the size of collaterals will become not so important at the account of more right analysis of submitted business plan and after taking into account cash flows, he said adding that each bank will chose creditor, if EBRD will watch composition and structure of credit portfolio in Armenia's regions. Today 4 Armenian partner banks are included in the EBRD program on crediting small and medium business - Anelik Bank, ACBA, Armeconombank and Inecobank. $135mln has been provided to 17 countries as technical assistance in implementation of microfinance programs. Armenia got membership in EBRD on December 7, 1992 with share of 10mln euros. As of Dec 31, 2004, EBRD signed agreements with seven investment projects in Armenian worth 88mln euros. This amount makes 0.3% of total investments of the bank. Another 54mln euro is attracted in addition to EBRD funding.
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