Tuesday, December 19 2017 17:18

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%.