ADB to provide USD 65 mln loan to fund Armenia’s SMEs

PanARMENIAN.Net - The Asian Development Bank (ADB) has approved loans of up to USD 65 million to help Armenia expand its small and medium-size business sector which is crucial for driving inclusive growth, increasing employment, and reducing poverty.

The five-year loans will be provided to four Armenian banks for onlending to small- and medium-sized enterprises (SMEs) which make up almost 98% of all businesses and provide more than 40% of the country’s gross domestic product and employment.

The four banks earmarked to receive loans―ACBA Credit Agricole Bank, Ardshininvestbank, Ameriabank, and Inecobank―all have strong financial credentials and are committed to expanding their lending to SMEs.

“This is the first ADB initiative to promote SMEs in Armenia, and its largest initiative to-date in support of Armenia’s financial sector. The program will provide the four banks with vital medium-term funds needed to reach more SMEs,” said David Dole, Resident Representative in Armenia. “Helping smaller firms to grow will create jobs and boost incomes as well as help Armenia diversify its economy,” he stated, according to ADB press service.