Project Description
Supported by the EU, the project operates within the European Fund for Sustainable Development Plus (EFSD+) guarantee programme. This initiative introduces an innovative first loss risk cover, currently available in the southern and eastern Mediterranean region (Egypt, Jordan, Morocco, Tunisia, Lebanon and the West Bank and Gaza) and eastern Europe and the Caucasus (Armenia, Azerbaijan, Georgia, Moldova and Ukraine). The EFSD+ financial inclusion programme empowers MSMEs, fostering their competitiveness and growth. By offering effective financial tools and expertise, the programme aims to drive development and create jobs.
Project Objectives
Provision of a senior unsecured loan to ACBA Bank of up to USD 15 million under the Financial Intermediaries Framework ("FIF") for on-lending to private micro-, small and medium enterprises ("MSMEs") in Armenia. The project will improve access to finance for SMEs, which are the main source of employment in the private sector and a major contributor to the economy in Armenia. The loan will enable ACBA to increase outreach and meet unsatisfied demand for longer term LCY funding from SMEs. The focus will also be on lending in the regions outside the capital and attracting new SME clients.
