Provision of a senior unsecured loan to Armeconombank of up to EUR 5 million for financing of micro, small and medium-sized enterprises (MSMEs) under the SME Competitiveness Programme in Eastern Partnership countries of the EU (EAP) ("SME Competitiveness Programme").
The proceeds of the Bank's investment will be on-lent by Armeconombank in line with the SME Competitiveness Programme's policy statement to private sector sub-borrowers in order to upgrade their technologies and equipment to EU standards including for investments promoting sustainable and green technologies, thereby enhancing businesses' competitiveness.
ETI score: 75
The financing is expected to address existing market barriers that MSMEs face to undertake necessary investments (limited access to medium and long-term financing, lack of technical expertise for identification and design of related improvements). The project will also further strengthen the capacity of Armeconombank in assessing and financing targeted investments.
ARMENIAN ECONOMY DEVELOPMENT BANK OJSC (ARMECONOMBANK)
OJSC Armeconombank is a mid-size private bank in Armenia, with an extensive network of 54 branches, including 22 branches located in the regions, with overall 859 employees.
EBRD Finance Summary
Total Project Cost
The project will provide long-term financing to Armeconombank in a market where short-term assets and liabilities prevail. Armeconombank and its clients will benefit from the EaP SMEC capacity building programme supporting investment project preparation and implementation. The sub-borrowers will also receive financial incentives for successfully implemented sub-projects.
Environmental and Social Summary
Categorised FI (ESP 2019): Armeconombank will be required to continue to comply with PRs 2, 4 & 9, implement the applicable environmental and social procedures and submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
TC: the project will be supported by a comprehensive TC package funded by the European Union, with the objective to assist Armeconombank bank with capacity building, implementation and monitoring of the programme.
Non-TC: Sub-projects will be eligible for incentive grants (up to 15% of the lower of the investment cost or the respective disbursed sub-loan amount) funded by the European Union.
Company Contact Information
0002, Yerevan, Amiryan str.23/1
PSD last updated
08 Nov 2021
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Independent Project Accountability Mechanism (IPAM)
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