ArmInfo. At the forum on the topic "Strength of financing in national currency", organized by the European Fund for Southeast Europe (EFSE) in the capital of Moldova, Chisinau, Head of the Department for Development of the Financial System and Stability of the Central Bank of the Republic of Armenia Andranik Grigoryan made a presentation on lending in national currency. ArmInfo was informed about this in the press service of the Central Bank of Armenia.
In his speech, A. Grigoryan noted such important factors as the need to change the perception of national currencies in developing countries and the development of alternative financing mechanisms by international financial organizations in national currency.
A. Grigoryan, presenting to the forum participants the experience of Armenia in lending in national currency, answered questions of interest to those present.
It should be noted that since 2010, the EFSE Fund has been implementing through several banks credit programs for the development of micro and small enterprises (SMEs), providing resources in the form of synthetic and multicurrency loans. Such a financing mechanism protects the program beneficiaries from currency risks, which in turn increases the profitability and competitiveness of companies in the local market.
To recall, the European Fund for Southeast Europe (EFSE) was created in 2005 with the aim of promoting the development of the economy and general welfare in the countries of Southeast Europe, in particular Albania, Armenia, Ukraine, Serbia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Macedonia, Georgia, Kosovo, Moldova, Montenegro, Romania. The fund provides long-term subsidies to local financial institutions for lending to small and medium-sized enterprises (SMEs), as well as medium-sized enterprises and low-income private households. In total, since its inception, EFSE has directed over 922 million euros to finance commercial banks, microfinance institutions, as well as non-financial institutions, thereby making it possible to issue more than 247.000 loans to small and medium-sized enterprises and private households.