Friday, December 5 2014 18:25
European Investment Bank is lending EUR 50 million to finance projects promoted by SMEs in Armenia
ArmInfo. The European Investment Bank (EIB) is lending EUR 50 million to finance projects promoted by SMEs in Armenia, particularly in the agro-processing, rural and tourism sectors, says the EIB press release sent to ArmInfo.
The EIB loan is being granted to the Central Bank of Armenia, which will make the EIB funds available to well-established financial intermediaries for on-lending to smaller projects. The loan will target particularly the agro-processing and rural sectors, which play an important strategic role in terms of development.
EIB Vice-President Wilhelm Molterer, responsible for EIB lending in Armenia, commented: "This is the first EIB loan extended via a Central Bank in the EU's Eastern Partnership. We are proud of this innovative cooperation, which underpins our engagement in Armenia."
Chairman of the Central Bank of Armenia Arthur Javadyan added:" This loan to SMEs will complement our long-term fruitful cooperation and increase the EIB's role in the sustainable development of the Armenian economy."
"Even though Armenia's SMEs account for the majority of businesses in the country, their contribution to GDP, employment, foreign trade and foreign investment remains low. The provision of affordable targeted loans to facilitate the adoption of modern technologies is a precondition for the development of the Armenian SME sector. The loan is in line with the objectives of the EIB's mandate for lending outside the EU, which focuses on the development of the local private sector, in particular support for SMEs, social and economic infrastructure and climate change mitigation and adaptation", the press release says.
The EIB - the European Union's bank - finances projects in Armenia on the basis of an EU Council and European Parliament mandate for the countries of the Eastern Neighbourhood. The 2014-2020 mandate provides for a total amount of Bank financing in the Eastern Neighbourhood of EUR 4.8 billion to support projects of significant interest to both the EU and its Eastern Neighbours in the areas of local private sector development, social and economic infrastructure and climate change. In addition, the Bank is setting up a EUR 3 billion Neighbourhood Finance Facility to enhance its support for the Neighbourhood Countries. Founded in Brussels in 1958 as the Treaty of Rome came into force, EIB moved to Luxembourg in 1968. Now EIB works with over 150 non-EU states which receive around 10% of EIB's funding.
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