Project description
and objectives:
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The USD 40 million framework aims to support the increase of financial
intermediation of Armenian banking system and support the economic progress of
the country by making much needed medium-term funding available to Armenian
micro and small business via credit lines to selected Armenian commercial
banks. Specifically, the new framework will include senior debt facilities
for mortgage lending and energy efficiency lending, and leasing. In addition
the framework would further expand senior debt facilities for Micro and SME
lending, as well as convertible debt and equity investments. This USD 40
million multi-bank framework builds on the positive experience of a previous
EUR 10 million framework for the Armenian financial sector.
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Sub-projects:
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- AMBFF F/W II - Anelik Bank SME Credit Line III
- Armenia Multi-Bank FW II - Inecobank
- AMBFF F/W II - Armeconombank Mortgage Facility
- Armenia Multi Bank Framework II - ArmeconomBank
- Armenia Multi-Bank FW II - Anelik Bank
- AMBFF F/W II - ACBA Armenia - A/B Loan
- Armenia MBFF II - Cascade Bank SME Credit Line
- Armenia MBFF II - Inecobank SME Credit Line
- Byblos Bank Armenia (BBA) Former ITB
- Armenia Multi Bank FW - Araratbank
- Armenia Multi-Bank FW II-Converse Bank MSME loan
- AMBFF F/W II - Armeconombank - A/B Loan
- AMBFF F/W II - ACBA A/B Loan
- Araratbank equity investment
- AMBFF II - Procredit Bank Armenia (Capital Increase)
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Transition impact:
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The facility will support the Armenian financial sector through a combination
of debt and equity financing and will promote adherence to best practices in
corporate governance, strengthen financial performance and financial
discipline. In addition, the facility will provide significant support to the
micro, small and medium-sized enterprise sector in Armenia by providing access
to medium and long-term financing. The technical assistance to be provided
under this operation will support the institutional development and micro and
small business lending units of the participating banks and leasing companies.
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The client:
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Existing and new partner banks as well as leasing companies. The first partner
bank under the new facility will be Anelik Bank, an existing client of the
Bank.
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EBRD finance:
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A USD 40 million multi-bank framework facility. The first funding to be
provided is proposed to be a USD 2.5 million SME loan to Anelik Bank.
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Total project cost:
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Not applicable.
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Environmental impact:
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The project will comply with EBRD’s Environmental Procedures for Small and
Micro Loans and for Intermediated Financing through Local Banks in respect to
MSME components. These include compliance with applicable national
environmental, health and safety legislation, adherence to the Environmental
Exclusion List, submission of Annual Environmental Report to the Bank and
nomination of a senior staff member in charge of the environmental issues.
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Technical
cooperation:
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In 2005 USAID committed USD 1.5 million in TC funding for MSE credit under the
original framework. This amount has been supplemented by USD 360,000 (EUR
300,000) from EBRD's multi-donor ETC fund. The total of USD 1.86 million will
be used to support the funding provided for MSE lending under both the
original framework and the second framework.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Not applicable.
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EBRD contact:
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Lilit Davoyan, Operation Leader: davoyanl@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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