YEREVAN, May 24. / ARKA /. The International Financial Corporation (IFC) , a member of the World Bank Group, and the Black Sea Trade and Development Bank (BSTDB) will support a leading producer of fruit juice in Armenia, benefitting the rural community by creating jobs, boosting agriculture, and increasing exports. A relevant agreemnt wa ssigned today in Yerevan.
IFC will provide a loan of $2.5 million and BSTDB will provide €2.05 million to Euroterm, the maker of Noyan fruit juice and canned foods, marketed under Noyan brand. Euroterm’s planned production expansion will increase the sales of farmers, especially those from the Armavir and Kotayk regions, who supply fresh fruits and vegetables to the company, IFC said in a press release. This is IFC’s first investment in Armenia’s agribusiness sector.
“As a result of this partnership with international financial institutions, we hope to continue modernizing our production, expand our work force, and increase our revenue and exports.” said Vahe Ghazaryan, General Manager, Noyan Company. “Long-term debt financing and expert advice will help us achieve our goals.”
As well as investment, IFC is also providing advisory services to Euroterm, helping to implement a food safety management system based on international standards. Advice from the IFC Armenia Food Safety Improvement Project is expected to increase the company’s competitiveness, sales, and exports. The project is supported with funds from the Ministry of Finance of Austria.
“The agricultural sector is the largest employer in Armenia and has strong export potential. We are happy to support a market leader like Noyan with its expansion plans, as this project will also benefit the company’s suppliers, small farmers in rural areas,” said Guy Ellena, IFC Director for Manufacturing, Agribusiness and Services for Europe, the Middle East and North Africa.
Armenia became a member and a shareholder of IFC in 1995. Since then, IFC has invested $244 million in 40 projects across a range of sectors, including financial markets, manufacturing, and mining. IFC advisory services provide advice on the financial sector, sustainable energy, regulatory simplification, and food safety.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. With an authorized capital of SDR 3 billion, the Bank supports economic development and regional cooperation by providing trade and project financing, guarantees, and equity for development projects supporting both public and private enterprises in its member countries. M.M.-0-
