Thursday, September 30 2021 17:20

ArmInfo. The European Bank for Reconstruction and Development (EBRD) is providing a US$ 5 million financial package to Inecobank in Armenia to facilitate the  private sector's transition to more sustainable, low-carbon and  climate-resilient practices. The project is supported by the European  Union (EU) with 523,000 EUR of grant incentives.

As the official website of EBRD reports, the package comes under the  EU4Business-EBRD Credit Line, with incentives for on-lending to local  small and medium-sized enterprises (SMEs) that have potential to  boost their exports. It will be used for investments in  climate-change mitigation and adaptation as well as for upgrading  technologies and services to EU standards while promoting the use of  green technologies.  This is the third project to be signed in  Armenia under the programme, paving the way for more local  enterprises to benefit from the framework.

The Credit Line is a flagship initiative helping local companies  increase their competitiveness at home and abroad by upgrading their  production facilities and processes to EU standards. At least 70 per  cent of individual loans are used to finance investments in green  technologies in accordance with the EBRD Green Economy Transition  (GET) approach. Borrowers are eligible to receive incentive grants  and technical advice funded by the European Union under its  EU4Business initiative. The programme is also available in Georgia,  Moldova and Ukraine.

Dimitri Gvindadze, EBRD Head of Armenia, said: "This new funding will  boost the competitiveness of local firms in Armenia by helping them  to invest in modern technology. It will allow companies to strengthen  their operations locally and take advantage of international trade  opportunities."

Ambassador Andrea Wiktorin, Head of Delegation of the European Union  to Armenia, said: "The EU is committed to supporting small businesses  in line with the Economic and Investment Plan for the Eastern  Partnership and the EU-Armenia Comprehensive and Enhanced Partnership  Agreement. The EU4Business- EBRD facility will support green  businesses which we believe are the future of Armenia. The overall  contribution of the EU to the EU4Business-EBRD facility covering  various Armenian banks is ?6 million."

Aren Naltakyan, CEO of Inecobank, said: "Holding a strong portfolio  of private-sector lending, Inecobank has been supporting and  providing customised solutions to businesses for 25 years, from the  day it was established. Together with our longstanding partners, we  are excited to announce this new opportunity, which allows our SME  clients to build resilience and increase competitiveness, by also  providing them with attractive incentives."