ArmInfo. The Central Bank of Armenia and German Development Bank KfW signed a loan agreement for 15 million euros to finance energy saving projects in the sphere of micro, small and medium-sized businesses (SMEs). As the press service of the Central Bank of Armenia told ArmInfo, the document was signed on December 18.
According to the source, the placement of credit resources will be carried out through banks and credit companies. The funds will be used to finance energy-saving projects, which will enable micro, small and medium-sized enterprises to modernize using modern energy-efficient equipment.
The cooperation also provides for technical assistance, namely, the beneficiaries of the program will be provided with appropriate advice.
According to the Financial Rating of the Armenian Banks, as of October 1, 2017, prepared by the IA ArmInfo, the volume of SME lending amounted to 643.3 billion AMD or $ 134.5 million, with a slowdown in the annual growth rate from 12.4% to 7.5%. In the total credit investments of banks, the share of SMEs is 24.3%. In the total bank crediting of the SME sphere, about 57% covers the first four - Armbusinessbank, VTB Bank (Armenia), Ameriabank and Ardshinbank.
KfW is one of Armenia's largest donors. KfW's investments for the past 20 years have exceeded 500 million euros for more than 14 programs, including in the SME sector, agricultural sector, energy complex, the environment and in the financial and banking sector. Armenia's external debt to the Bank on October 1, 2017. amounted to $ 233.6 million (4.6% of the total external debt of the RA) with an annual growth of 13.5%.
