| Project Detail |
Location: Armenia Project number: 55640 Business sector: Financial institutions Notice type: Private Environmental category: FI Approval date: 15 Oct 2024 Status: Approved English-language PSD published: 18 Oct 2024 Provision of a senior loan to Araratbank (AB) of up to USD 5 million under the SME Competitiveness and Inclusion Programme in Eastern Partnership (EaP SMECI) established by the European Bank for Reconstruction and Development (EBRD) in cooperation with the European Union (EU) to be on-lent to eligible micro, small and medium sized enterprises (MSMEs). Project Objectives The project will enable AB to finance long-term investments of Armenian MSMEs in upgrading their production facilities and processes to achieve compliance with the EU standards, including investments in sustainable and green technologies, thus facilitating competitiveness of Armenian MSMEs in the European and domestic markets. In addition to long-term financing, eligible sub-borrowers will benefit from investment incentives upon successful completion of their investment projects. At least 70 per cent of all financed sub-loans are expected to be compliant with EBRD Green Economy Transition (GET) approach. The project will also introduce, for the first time, a new voluntary window Refugee Response Window for Armenia (RRWA) dedicated and designed to address challenges faced specifically by displaced people as well as MSMEs in host communities. In addition to SMECI investment incentives, the RRWA will offer enhanced incentives to underserved, yet bankable refugee population, as well as, MSMEs in host communities to integrate and on-board refugees into their workforce. |
