YEREVAN, December 9. / ARKA /. The European Investment Bank (EIB) will provide Armenia with a $50 million euro loan to finance small and medium-sized businesses, the Central Bank of Armenia reported today saying also that an agreement to that end was signed by the Central Bank of Armenia and the EIB.
The regulator said the loan will be used largely to finance companies engaged in processing of agricultural goods, farming and tourism.
Central Bank chairman Artur Jabadyan is quoted as saying in a press release that the loan will complement Central Bank’s long-term fruitful cooperation and increase the EIB’s role in the sustainable development of the Armenian economy.
Wilhelm Molter, the vice-president of the European Investment Bank is quoted as saying that this is the first loan of this type to be given to the Armenian banking system as part of EU’s Eastern Partnership program to contribute to the diversification of Armenia’s economy.
“Despite the fact that the bulk of entrepreneurial activity in Armenia is represented by SMEs their share in GDP, foreign trade and foreign investments remains at a low level yet”, the Central Bank’s report says.
One of the conditions for the development of SMEs in Armenia is the accessibility of loans at favorable rates. This loan meets EIB’s criteria for lending outside the EU. One of them is the development of the local private sector, in particular, the promotion of SMEs, social and economic infrastructures, as well as mitigation of climate change.
The European Investment Bank is one of the EU banks, whose programs in Armenia are funded by the EU Council on the basis of the mandate of the EU Council and the European Parliament in respect of the Eastern partner countries. According to the mandate for 2014-2020, it is envisaged to allocate 4.8 billion. Euros in bank financing to support programs that are important for the EU and the Eastern Partnership Program.-0-
