Wednesday, February 20 2019 14:37

ArmInfo. ArmSwissBank and  the European Bank for Reconstruction and Development (EBRD) on  February 19 signed 2 loan agreements for 10 million euros under the  programs "SME Development" and "Green Economy Financing Facility"  (GEFF). The loan under the GEFF program will be provided to  ArmSwissBank by the Eurobank and the Green Climate Fund (GCF).

The loan will help SMEs and corporations to invest in green  technologies. The Green Economy Financing Facility helps enterprises  to invest in climate change adaptation and mitigation technologies,  which also helps to increase their productivity and reduce costs.

As part of the GEFF program, clients were offered financing of energy  saving projects on favorable terms with a maturity of up to 7 years.  In particular, borrowers will have the opportunity to receive free  technical assistance, and in case of meeting certain requirements, a  cashback of up to 20% of the loan amount will be applied. For SME  ArmSwissBank offers loans on competitive terms with a maturity of up  to 5 years.

"Energy efficiency programs are very important for us not only  considering that this trend is becoming increasingly relevant and in  demand worldwide, but also because such programs are essential for  Armenia," the Chairman of Managment Board, Executive Director of  ArmSwissBank Gevorg Machanyan said in an interview with ArmInfo  correspondent. First of all, he explained it by the fact that the  Armenian economy needs modernization. In particular, according to  him, today there are a lot of enterprises in the country that need  technical re-equipment, which can be implemented under this program.  And the provided grant component, in his opinion, will be a stimulus  for economic entities to decide on such a step. "This program is  aimed at the future, and will contribute not only to energy  conservation, but also provide competitive advantages, ensuring the  modernization of production," he said.

G. Machanyan stated that in the international market, Armenian  products are becoming more and more popular and demanded. In this  vein, G.Machanyan stressed the need to ensure quality production in  accordance with international standards. He also noted that in  addition to the agreement with the EBRD, the Bank finances  energy-efficient projects, in particular projects on the green  economy, at its own expense.  Besides, G.Machanyan informed that the  day before the Bank approved 13 programs for financing small and  medium-sized solar stations in the framework of cooperation with the  German charitable foundation.  "We are working with international  structures to attract funds on more favorable conditions, which will  be used to finance projects on green economy," he concluded.

In turn, the Head of EBRD Armenia Office Dimitri Gvindadze, answering  the question of ArmInfo correspondent, noted that energy efficiency  and renewable energy sources are one of the priorities of activity in  all countries of the European Bank, including Armenia. "This year we  will start developing a new partnership strategy with Armenia, which  the Board of Directors will approve in the second half of 2019. And I  believe that renewable energy and energy efficiency will be one of  the main priorities," he said, adding that the financial sector and  some segments of the real sector of the economy will also be set as  priorities for cooperation. Answering the question of how much  investment from the European Bank is expected in Armenia in 2019, he  said: "Based on the results of study of the Armenian economy, funds  will be allocated considering our capabilities and your needs. I  don't want to voice the amount in advance, but our threshold for  projects in Armenia is $ 70 million or $ 100 million. However, if  there are interesting projects, including international investors for  $ 200-300 million, we will definitely consider them".

To recall, "ArmSwissBank" CJSC was established on October 7, 2004.  The 100% stake in ArmSwissBank is owned by HVS Holding LLC, managed  by Vartan Sirmakes and registered in Luxembourg, while the indirect  shareholder is Vartan Sirmakes.

To note, the EBRD is a large international institutional investor.  Since the start of EBRD activities in Armenia, namely, since 1992,  more than 1.2 billion euros have been invested in the implementation  of 168 programs in the financial, corporate, infrastructure, and  energy sectors. Moreover, 88% of these investments are directed to  the development of private entrepreneurship. Since 2006, the EBRD has  allocated a total of 26 billion euros in 38 countries of the world,  where the Bank has offices to implement the transition to a green  economy.