Armenia Multi-Bank Framework II

Location:

Armenia

Project number:

36647

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

23 Mar 2006

Status:

Completed

PSD disclosed:

03 Feb 2006

Project Description

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.

Transition Impact

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.

The Client

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.

EBRD Finance

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.

Project Cost

Not applicable.

Environmental Impact

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.

Technical Cooperation

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.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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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