50 million euro loan to the SMEs
The European Investment Bank and the Central Bank of Armenia signed agreement on lending 50 million euro for financing the projects carried out by the SMEs. The funds will be allocated to the agro-processing, rural and tourism sectors. Funds will be granted to the CBA to be distributed by the financial intermediaries to the SMEs. EIB Vice-President Wilhelm Molterer, responsible for EIB lending in Armenia, noted: “This is the first EIB loan extended via a Central Bank in the EU’s Eastern Partnership. We are proud of this innovative cooperation, which underpins our engagement in Armenia.” CBA chairman Arthur Javadyan added that the loan to SMEs will complement our long-term fruitful cooperation and increase the EIB’s role in the sustainable development of the Armenian economy. Even though Armenia’s SMEs account for the majority of businesses in the country, their contribution to GDP, employment, foreign trade and foreign investment remains low. The provision of affordable targeted loans to facilitate the adoption of modern technologies is a precondition for the development of the Armenian SME sector. This loan meets the standards of the EIB’s mandate for lending outside the EU, which focuses on the development of the local private sector, in particular support for SMEs, social and economic infrastructure and climate change mitigation and adaptation. RA Central Bank
