The leading Armenian bank will receive a financial package of $20 million, comprising two equal loans, from the European Bank for Reconstruction and Development (EBRD) for on-lending to the private sector.
Half of this amount will be on-lent to Armenian firms to foster their growth and development, and the other $10 million – co-financed by the European Union – will support investments in environmentally-friendly equipment and production upgrades that meet EU standards.
This financing will enable borrowers to enhance their competitiveness and diversify their export markets. It will also support the implementation of health and safety measures, as well as the adoption of environmentally-friendly practices and resource efficiency. At least 70 per cent of the loan will be allocated to funding green technologies.
Borrowers will benefit from free support from international consultants and will receive cash-back incentives upon completion of their investment projects. Both are funded by the EU under its SME Competitiveness programme and contribute to the aims of the EU’s Eastern Partnership (EaP) Economic and Investment Plan, which include supporting 30,000 SMEs in Armenia.
The financing is part of a joint programme, the EU4Business-EBRD Credit Line, for which the EU provides investment incentive grants and technical assistance. This programme is also available in Georgia, Moldova and Ukraine.
Lawrence Meredith, Director for Neighbourhood East and Institution building at the European Commission, said: “This is an investment in the future of both businesses and the environment. The European Union is proud to support this new concessional credit line. This is yet another demonstration that our Economic and Investment Plan for Armenia is delivering on the ground.”
The EU4Business-EBRD SME Competitiveness programme is an EU-funded programme, which provides incentives for capex investments in advanced technologies and processes for SMEs in the Eastern Partnership region. In addition, the programme provides technical assistance to SMEs to improve their competitiveness.
