Tuesday, October 3 2023 16:25

ArmInfo. The European Investment Bank (EIB), the lending arm of the European Union, will provide a  loan of EUR70 million to the Central Bank of Armenia to increase access to financing for small and medium-sized enterprises (SMEs) and mid-caps in Armenia. 

This initiative is part of the EIB's Armenian Economic Resilience  Programme, with backing from the European Fund for Sustainable  Development Plus (EFSD+). The programme is designed to facilitate  access to financing for businesses in Armenia, contributing to  economic growth and resilience. 

The funds, channelled through the Central Bank of Armenia, will be  directed to eligible companies via commercial banks and universal  credit organisations, ensuring a streamlined approach to financing.  Like its predecessors, the Programme, will be implemented by the  German-Armenian Fund, and will support an estimated 1 200 enterprises  and sustain 1 500 jobs. Eight partner financial institutions are  already confirmed to take part in the Programme. 

This strategic partnership underscores the European Union's  commitment to promoting economic growth, resilience and sustainable  development in Armenia, fostering a brighter future for its SMEs and  mid-caps.  It also emphasises the support for a sustainable,  innovative and competitive economy, as one of the five main pillars  for Armenia under the European Union's Economic and Investment Plan  for the Eastern Partnership. 

The loan is complemented by technical assistance financed by the  Eastern Partnership Technical Assistance Trust Fund (EPTATF). The  EIB's advisory services will help businesses implement green  projects, further social inclusion and pursue digitalisation.

Head of the EU Delegation to Armenia Ambassador Vasillis Maragos  added, "This loan reaffirms the EU's commitment to Armenia's  resilient economic growth. It is an initiative that decisively  contributes to the EU's Economic and Investment Plan target of  mobilising ?500 million in investments for Armenia's private sector  and supporting 30 000 SMEs. Let us remember, though, that this  initiative is much more than mere numbers. It is about real impact.  We are prioritising balanced regional growth, empowering women  entrepreneurs and promoting green projects, all in line with EU  values and a steadfast commitment to supporting Armenia as it builds  a sustainable, innovative and competitive economy - and most  importantly, we stand with Armenia in difficult times."

The Deputy Prime-Minister of the Republic of Armenia Mher Grigoryan,  said: "The development of small and medium-sized enterprises has a  critical role for inclusive and sustainable economic development,  boosting innovation, improving economic resilience as well as  structure of the economy.  Taking into account the current  complicated developments in the region, it is especially critical  today to do the utmost to provide with all necessary prerequisites  for sustainable and continuous development of the private sector.   The Program designed with joint efforts serves the goal to support  the Armenian small and medium-sized enterprises to have easy access  to local currency financing."

EIB Vice-President Teresa Czerwinska, responsible for operations in  Armenia, remarked, "Today, amid a challenging period for the country,  with the support from the European Union, we are extending further  financing to the Central Bank of Armenia, a well-established partner  of the EIB. This fourth EIB loan will boost economic resilience  through the smooth flow of funds to small businesses, with a  particular focus on women entrepreneurs and green projects in line  with the EU Economic and Investment Plan for the Eastern Partnership  for Armenia. Supporting underserved SMEs, it will contribute to an  inclusive and sustainable Armenian economy." 

Martin Galstyan, Governor of the Central Bank of Armenia, explained,  "Financial cooperation between the EIB and CBA started in 2014, and  has been very successful. It has greatly enhanced the development of  Armenia's private sector through financial institutions and, due to  the programme requirements, has dramatically improved SMEs and  brought international best standards to financial institutions and  the private sector as a whole. Within the scope of the cooperation  many important and impactful projects have been financed. With the  new loan facility of ?70 million, ambitious targets have been set to  support SMEs and mid-caps as they invest in green projects, empower  women and promote digitalisation."

Background information About the Economic and Investment Plan for the  Eastern Partnership In 2021, the European Union launched the Economic  and Investment Plan for the Eastern Partnership countries - aimed at  supporting, among others, the development of resilient, sustainable  and integrated economies in the region.  The plan contains a set of  flagship initiatives for each of the partner countries. These are  concrete priority projects with tangible results, identified jointly  with the partner countries and taking into account their priorities,  needs and ambitions.  The Armenian Economic Resilience Programme  supports a sustainable, innovative and competitive economy as one of  the five flagship initiatives for Armenia under the European Union's  Economic and Investment Plan for the Eastern Partnership.  About EIB  support for Armenia The EIB has worked with Armenia since 2010. It  operates in the country in line with the European Neighbourhood  Policy, the Eastern Partnership and other EU bilateral agreements. In  the last decade, the Bank has provided financing for a wide range of  projects, from infrastructure and small businesses to water supply  services and wastewater treatment. It also funds cross-border  connections to build safer and more sustainable roads.