ArmInfo. As part of the EU4Business initiative the EU launched in Armenia in July 2021, the European Bank for Reconstruction and Development (EBRD) and Armenian financial institutions signed EUR 30mln credit lines, Lilit Gharayan Team Leader EU4Business- EBRD Credit Line Armenia, said at the forum entitled "EU4Business-EBRD Credit Line in Armenia - Impact to date and Way Ahead" on April 14.
As of now, over 70 local micro, small and medium-sized sized enterprises (MSMEs) have received loans to the amount of EUR 15mln by means of the partner banks - Ameriabank, ACBA Bank, ACBA Leasing, Armeconombank, ArmSwissbank, Inecobank.
The production sector's share in the credit line is 49%, followed by food industry (13%), health sector (9%), restaurants and hotels (5%), services sector (4%), agricultural sector (4%), construction (2%), transport (2%), etc., Ms Gharayan said.
The programme enables Armenian MSMEs to increase their competitiveness and capacity. The EU4Business-EBRD Credit Line in Armenia helps companies to meet EU standards. They can export their products to the EU markets and be more competitive on the local market.
Talking to reporters, Ms Andrea Wiktorin, Head of the EU Delegation to Armenia, said that MSEs are the backbone of any healthy economy. As part of the initiative, the EU is involving businesswomen as well, assisting a transition to "green" economy. Much has yet to be done in Armenia's SME sector, with the banking sector to be involved as well.
The credit lines were intended for 89 investment programmes, with 20 of them being "green" ones. Ms Wiktorin voiced hope it will be the first step in the EU's involvement in Armenia's SME sector. According to her, 40% of the EU assistance to Armenia must be directed to the development of "green" economy. The programme is being implemented under the EU investment and economic plan, Ms Wiktorin said.
George Akhalkatsi, Head of the EBRD Yerevan office, pointed out growing interest in the credit line, with more sectors being involved. He highlighted a need for appreciating the EU support for the programme - both grants and technical assistance to SMEs. It is a good example of how combined efforts can contribute to sustainable "green" economy. As regards technologies, Mr Akhalkatsi stressed that under the programme the EBRD highlights the importance of investments in both renewable energy and energy-saving and technologies, which saves both water and natural gas resources. In this context, he said that the EBRD has instruments at its disposal enabling it to find out individual companies' consumption, to help them invest in technologies and reduce construction, with better environmental protection.
Work is being done to involve other Armenian financial institutions. Mr Akhalkatsi hopes that the programme indicators will be doubled.
The EBRD has invested over EUR 200bln in 200 projects in Armenia. Since 2006, the EBRD investments in "green" economy projects have totaled EUR 49bln.
The EBRD forecasts 4% GDP growth in Armenia this year (against the 13.5% forecast for 2022), with a moderate acceleration to 4.8% in 2024.
In 2022, Armenia's exports to the EU market totaled $772.7mln - a 17.8%
According to Armenia's Ministry of Economy, the SMEs' share in Armenia's GDP is around 27%. The ministry plans to bring this figure up to 50%.
