Tuesday, December 21 2021 17:23

ArmInfo. The European Bank for Reconstruction and Development (EBRD) is providing a EUR 5 million financial support package to Armeconombank 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 grant  incentives allocated through Armeconombank, according to an EBRD  report.

The package is provided under the EU4Business-EBRD credit line, with  incentives for on-lending to local small and medium-sized enterprises  (SMEs) with export potential for investments in climate change  mitigation and adaptation. It will also help SMEs to upgrade  technologies and services to EU standards while promoting the use of  green technologies. This is the fourth project to be signed in  Armenia under the programme.

The EU4Business-EBRD 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.   The companies will be able to improve the working conditions of their  employees and foster environmental sustainability. At least 70 per  cent of the loan proceeds will be used to finance investments in  green technologies in accordance with the EBRD's Green Economy  Transition (GET) approach. Borrowers are eligible to receive  incentive grants and technical advice, both funded by the EU under  its EU4Business initiative. The programme is also available in  Georgia, Moldova and Ukraine.

Dimitri Gvindadze, EBRD Head of Armenia, said: "We are pleased to  step up our support for SMEs in Armenia together with our  long-standing partner Armeconombank. The funding aims to facilitate  the competitiveness of local firms in Armenia by helping to invest in  modern technology that will allow companies to strengthen their  operations locally and take advantage of international trade  opportunities." Ambassador Andrea Wiktorin, Head of Delegation of the  EU to Armenia, said: "The EU is committed to supporting small  businesses' growth and sustainability. To this end, the  EU4Business-EBRD facility supports SMEs with impact financing for  green technologies. The overall contribution of the EU to the  EU4Business-EBRD facility covering different Armenian banks is ?6  million."

The EBRD is a leading institutional investor in Armenia. The Bank has  invested more than ?1.66 billion through 195 projects in the  country's financial, corporate, infrastructure and energy sectors,  with 91 per cent of those investments in the private sector.

About the EU

The member states of the EU have decided to link together their  know-how, resources and destinies.  Together, they have built a zone  of stability, democracy and sustainable development while maintaining  cultural diversity, tolerance and individual freedoms. The EU is  committed to sharing its achievements and its values with countries  and peoples beyond its borders.

According to the ArmInfo financial ranking of Armenia`s banks, the  banking sector`s loans to SME exceeded MD 895bln or $1.8bln - about  22% in the total lending. The Armbusinessbank, Ameriabank, ACBA Bank,  Ardshinkbank and Araratbank are the TOP-5.