YEREVAN, October 10. /ARKA/. The European Bank for Reconstruction and Development (EBRD) has launched a new initiative – Financial Literacy to Remittance Recipients programme in Armenia.
The innovative financial education project aims to boost financial inclusion in Armenia, by developing personal finance skills and increasing the confidence of remittance recipients in opening bank accounts, the EBRD press office reports.
The project is funded through the EBRD’s multi-donor Early Transition Country (ETC) Fund.
Under the scheme, over the past year more than 24,000 people across the country were trained on how to better manage their finances, with over 10,000 of them opening accounts, which attracted more than US$ 4 million in deposits over nine months, according to the report.
Five Armenian banks joined the initiative, and specially trained financial advisors were engaged in bank branches that handle large numbers of remittance transactions, inviting customers for free one-on-one consultations to help them manage their finances and, if appropriate, to open a bank account, says the report.
Head of the EBRD’s Resident Office in Yerevan Mark Davis said encouraging beneficiaries to use local banks will help to further strengthen the banking sector, and expand credit availability and new products.
“It is a win-win situation. Banks and the economy will benefit, and new customers can benefit from products they were never aware existed, such as interest on savings, or leveraging money for mortgages or loans to start a small business”, he said.
Armenak Darbinyan, Board Member of the Central Bank of Armenia, appreciated the project.
“The project proved that financial education is an effective instrument to help people change their financial behaviour and thus improve their financial well-being. Other important aspect is that the project is a success story and a good example for all banks to initiate or get engaged in financial education activities”, he said.
The ETC Fund’s financial literacy project, implemented by the Developing Markets Associates Limited consultancy from October 2012 to September 2013, is part of a larger programme that has been carried out in several early transition countries, including Georgia, Moldova, Azerbaijan, Tajikistan, Kyrgyz Republic and, most recently, Armenia, to strengthen the financial inclusion of remittance recipients. Already 145,000 people have been provided with consultations, 23,000 new accounts have been opened, and a total of US$ 26 million has been deposited in these accounts.
The EBRD has been working in Armenia since independence and has invested over 656 million euros under 120 programs so far.–0–
