Monday, November 26 2018 17:06

ArmInfo. The total investment portfolio of the Eurasian Development Bank (EDB) in  Armenia is about $ 185, and the current one is $ 66 million. Director of the EDB in the Republic of Armenia Armen Melikyan, told ArmInfo in an interview.

According to him, the current investment portfolio mainly concerns  the financial sector of Armenia and is aimed at supporting small and  medium enterprises, medium business, microfinance, trade finance.  Project implementation is carried out through commercial banks.  Currently EDB is working with Ameriabank, Ardshinbank, ARARAT BANK.  Also considered, as partners are Converse Bank and Armswissbank.

Armen Melikyan also announced the intentions of the EDB to intensify  work in Armenia, stating that the Bank is ready to finance projects  in the republic totaling about $ 300 million. This is about large  projects that are at different stages of consideration.  In  particular, programs are being discussed in the telecommunications,  agriculture and electricity sectors.  "There are some technical  issues that will allow us to start implementing these projects from  2019," Melikyan stressed, adding at the same time that everything  will depend not only on the Bank, but also on the partners. He also  noted that the financing of the programs will take into account both  the state of the Armenian economy and the level of profitability of  the companies involved in these projects. "The work is going on both  from the side of consultants and counterparties, financial models and  risks are being evaluated," the head of the EDB in Armenia stressed.

Earlier, the press service of the international financial institution  reported that recently the EDB has stepped up its activities in  Armenia. Two new projects totaling $ 36 million began to be  implemented only this year.  The share of the Republic in the current  investment portfolio for 7 months increased almost one and a half  times from 1.3% to 2.0%. A number of new projects are being prepared  with integration potential totaling $ 239 million. They will be  implemented in the sphere of agriculture, electric power,  telecommunications technologies, and small and medium-sized  businesses.

"In June, the bank's council approved a new strategy until 2022,"  said chairman of the board of the Eurasian Development Bank Andreiy  Belyaninov.  - The document, in particular, provides for the growth  of the portfolio of projects in absolute terms in Armenia. This  accounts for the largest country limit in the current investment  portfolio among all minority shareholders - 15%. For example, the  limits for Kyrgyzstan and Tajikistan are 10% each. In addition, we  actually remove the minimum thresholds for the cost of projects. In  order to expand its portfolio of operations in Armenia, the EDB is  ready to consider financing even small initiatives at a cost of  several million US dollars. "

"The bank is interested in expanding financing for projects in  Armenia," Andrey Belyaninov continued, "while many of them require  financing in national currency. The EDB could raise funds in the  financial market through issuing bonds, but the volume of the  Armenian financial market does not allow attracting funds of the  required amount and In a similar situation in Kazakhstan, we have the  opportunity to fund our projects by attracting resources from the  National Bank through repos and the purchase of bonds by state funds  th EDB. We would be very interested in providing us with similar  instruments in Armenia.  Moreover, this practice applies to other  international financial institutions, such as the Asian Development  Bank. "

"In accordance with the approved strategy," summed up Andrey  Belyaninov, "the bank started implementing a new function for  settlement and clearing clients, a pilot transaction was made. It is  planned to create its own full-scale settlement system in the  national currencies of the member countries of the bank".

The Eurasian Development Bank (EDB) is an international financial  institution established by Russia and Kazakhstan in January 2006 with  the aim of promoting the development of the market economy of the  member states, their sustainable economic growth and the expansion of  mutual trade and economic ties.  The authorized capital of the EDB is  $ 7 billion. The Bank's member states are the Republic of Armenia,  the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz  Republic, the Russian Federation and the Republic of Tajikistan.

The Governments of the same six countries established the Eurasian  Fund for Stabilization and Development (EFSD) in the amount of $  8.513 billion on June 9, 2009. The objectives of the EFSD are to  assist member countries in overcoming the effects of the global  financial crisis, in ensuring their economic and financial stability,  and in supporting integration processes in the region. The EFSD  member states entrusted EDB with the functions of the Fund Manager  and signed the EFSD Fund Management Agreement with the Bank.