Project number:


Business sector:

Depository Credit (banks)

Notice type:


Environmental category:


Approval date:

20 Jul 1999



PSD disclosed:

18 Dec 1998

Project Description

A multi-bank framework facility for providing senior debt, senior convertible debt and equity capital to local Armenian banks. The first operation under the framework will be a credit line to the Armenian Joint-Stock Agrobank (Armagrobank). The project represents the first EBRD financial sector project in Armenia. Its primary objectives are to support the development of private small and medium-sized enterprises and the banking sector.

Transition Impact

The facility will support the banking sector through a combination of debt and equity financing and will promote adherence to good standards of corporate governance, strengthening financial performance and ensuring financial discipline. The technical assistance to be provided under this operation will support the institutional development of the participating banks. In addition, the facility will provide significant support to the small and medium-sized enterprise sector in Armenia by providing access to medium and long-term credit, indirectly contributing to job creation.

The Client

Bank clients under the proposed multi-bank framework facility will be Armenian private commercial banks with a satisfactory level of creditworthiness and capable management teams. The first proposed participating bank under the facility is the Armenian Joint-Stock Agrobank (Armagrobank).

EBRD Finance

An ECU 10 million multi-bank framework facility. The first investment will be a US$ 3.5 million senior debt to Armagrobank.

Project Cost


Environmental Impact

Participating banks will follow the EBRD's Environmental Procedures for Local Banks in relation to all sub-loans financed through the facility. In implementing these procedures, banks will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with Armenian health, safety, environmental and public consultation requirements.

Technical Cooperation

ECU 750,000 technical assistance package has been approved. The funding has been secured from Japanese funds and the consultants will be selected in December 1998. The technical assistance will include a credit advisor and support for the participating banks’ institution building.

Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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