25  18.06.14 - The 8th Annual Meeting of the European Fund for Southeast Europe (EFSE)

EFSE gets extra capital to boost Armenia Local Currency Facility

EFSE gets extra capital to boost Armenia Local Currency Facility

PanARMENIAN.Net - The European Fund for Southeast Europe (EFSE) received additional AMD 300 million (approximately EUR 0.5 million) capital from Small and Medium Business Credit Support CJSC (SMBCS), a subsidiary of the Central Bank of Armenia to strengthen the Armenia Local Currency Facility.

The Facility was created as a separate investment window within EFSE in December 2011, when the SMBCS invested AMD 875 million to support and promote local currency lending to micro and small enterprises (MSEs) in the country. With this investment, the total contribution by the SMBCS to EFSE will reach AMD 1.5 billion (approximately EUR 2.6 million). As of end of the second quarter 2014, the EFSE will have EUR 43.9 million in outstanding investments in Armenia. This in an increase of 11,7% since year-end.

“In the Central Bank of Armenia, we have found a strong promoter of responsible finance. Through innovative and effective means, CBA contributes to promoting local currency financing for MSEs and thereby mitigates the foreign currency risks,” said Monika Beck, Chairperson of the Board of EFSE. “Therefore we highly welcome this additional investment into the Fund as a sign of confidence in the EFSE and further contribution to the stability and development of the banking sector in Armenia.”

Arthur Javadyan, Governor of the Central Bank of Armenia, added: “We are happy to see that EFSE portfolio is continuously growing both in value and in the number of partner lending institutions in Armenia and the Fund is becoming one of the major sources of SME financing. Further investment of the CBA’s subsidiary in the EFSE’s capital will give Armenian lending institutions a possibility to obtain additional funding from EFSE’s local currency window for SME financing. We hope EFSE in its turn will leverage up the invested finances and contribute to the further growth of its local currency investments in Armenia. SMEs are crucial players for the Armenian economy. Different opportunities of attracting long term funding will enable lending institutions to better serve the financial needs of SMEs helping them to grow, to generate additional income, to create employment and foster the development of the country.”

 Top stories
Aleksei Miller was also scheduled to meet with government officials in Germany, which is a major customer of Gazprom’s supplies.
Access to finance is a major impediment to the growth of micro, small and medium enterprises, especially in the rural areas.
A reformed inspections system will mean reduced inspections for less riskier businesses, saving them time and resources.
Armenia saw remarkable economic growth and poverty reduction in the period preceding the global financial crisis of 2008–2009.
Partner news