YEREVAN, September 30, /ARKA/. The European Bank for Reconstruction and Development (EBRD) is providing a US$ 5 million financial package to Inecobank in Armenia to facilitate the private sector’s transition to more sustainable, low-carbon and climate-resilient practices. The project is supported by the European Union (EU) with €523,000 of grant incentives, EBRD said today in a press release.
The package comes under the EU4Business-EBRD Credit Line, with incentives for on-lending to local small and medium-sized enterprises (SMEs) that have potential to boost their exports. It will be used for investments in climate-change mitigation and adaptation as well as for upgrading technologies and services to EU standards while promoting the use of green technologies. This is the third project to be signed in Armenia under the program, paving the way for more local enterprises to benefit from the framework.
The Credit Line is a flagship initiative helping local companies increase their competitiveness at home and abroad by upgrading their production facilities and processes to EU standards. At least 70 per cent of individual loans are used to finance investments in green technologies in accordance with the EBRD Green Economy Transition (GET) approach. Borrowers are eligible to receive incentive grants and technical advice funded by the European Union under its EU4Business initiative. The program is also available in Georgia, Moldova and Ukraine.
Dimitri Gvindadze, EBRD Head of Armenia, said: “This new funding will boost the competitiveness of local firms in Armenia by helping them to invest in modern technology. It will allow companies to strengthen their operations locally and take advantage of international trade opportunities.”
Ambassador Andrea Wiktorin, Head of Delegation of the European Union to Armenia, said: “The EU is committed to supporting small businesses in line with the Economic and Investment Plan for the Eastern Partnership and the EU-Armenia Comprehensive and Enhanced Partnership Agreement. The EU4Business- EBRD facility will support green businesses which we believe are the future of Armenia. The overall contribution of the EU to the EU4Business-EBRD facility covering various Armenian banks is €6 million.”
Aren Naltakyan, CEO of Inecobank, said: “Holding a strong portfolio of private-sector lending, Inecobank has been supporting and providing customized solutions to businesses for 25 years, from the day it was established. Together with our longstanding partners, we are excited to announce this new opportunity, which allows our SME clients to build resilience and increase competitiveness, by also providing them with attractive incentives.”
About Inecobank
Inecobank is a longstanding partner bank of the EBRD and offers a full range of services to individuals and SMEs. It is one of the leading banks in the southern Caucasus region, focused on individual customers, small and middle-market businesses and large corporations and offering a full range of banking services, including breakthrough and innovative digital banking solutions. Over 25 years, the bank has served more than 500,000 customers. Today, more than 250,000 people use Inecobank’s online services.
About the EBRD
The EBRD is a leading institutional investor in Armenia. To date, the Bank has invested more than €1.6 billion in 194 projects in the country’s financial, corporate, infrastructure and energy sectors, with 91 per cent of those investments in the private sector.
About the European Union
The Member States of the European Union have decided to link together their know-how, resources and destinies. Together, they have built a zone of stability, democracy and sustainable development while maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders. -0-
