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EBRD TO EARMARK 180 MILLION EURO FOR ARMENIA'S 2009-2010 ASSISTANCE PROGRAMS
ARKA
June 9, 2009
YEREVAN, June 9. /ARKA/. EBRD is prepared to invest over 180 million
Euro across various sectors of the Armenian economy over the next
two years, according to EBRD's latest strategy for Armenia.
Serving as a roadmap for EBRD's activity, the strategy for 2009-2010
focuses on areas that will help the country alleviate the effects of
the economic downturn.
Although Armenia is not directly exposed to the turmoil on the
global capital markets, the crisis will reach the country through
diminishing remittances and declining exports. Armenia's fledging
prosperity is likely to be severely tested in the difficult years
ahead, and the country's best hope for weathering the crisis lies
in further developing its small and medium enterprises, EBRD says in
its statement.
Under these circumstances, EBRD will uphold its commitment to support
private micro, small and medium-sized enterprises by providing
necessary financing for the development of this sector through local
partner banks.
At the same time, EBRD vows staunch support to Armenian banks
by offering credits for on-lending, and by introducing such new
products as energy efficiency loans. EBRD will selectively pursue
equity participation in Armenia's leading banks and will encourage
consolidation of the banking sector.
In the public sector, EBRD will also support projects w hich promote
transition and sector reform.
EBRD strategy notes that progress in structural reform in Armenia
has slowed down in recent years, and that significant challenges
need to be addressed to promote an investment-friendly environment
in the country. The Bank has identified a number of important issues
that need to be addressed, including diversification of the Armenian
economy, improving the competitiveness of export-oriented production,
promoting competition and limiting monopolies, tackling corruption,
strengthening the financial sector and promoting commercialisation
of public infrastructure.
To maximise the benefits of its investments in Armenia, the Bank will
maintain policy dialogue with local authorities in order to advance
structural and legislative reforms in the country, which will also
increase Armenia's investment appeal among potential investors.
Over the past four years, EBRD's investment in Armenia has more than
quadrupled and reached 125 million Euro across 43 projects. EBRD's
pipeline for next two years in Armenia includes over 30 projects,
for investments in excess of 180 million.
EBRD is the largest single investor in Armenia. To date the Bank has
committed over 240 million Euro in 64 projects in all major sectors
of the economy.
Owned by 61 countries and two intergovernmental institutions, EBRD
is supporting the development of market economies and democracies
from Central Europe to Central20Asia.
ARKA
June 9, 2009
YEREVAN, June 9. /ARKA/. EBRD is prepared to invest over 180 million
Euro across various sectors of the Armenian economy over the next
two years, according to EBRD's latest strategy for Armenia.
Serving as a roadmap for EBRD's activity, the strategy for 2009-2010
focuses on areas that will help the country alleviate the effects of
the economic downturn.
Although Armenia is not directly exposed to the turmoil on the
global capital markets, the crisis will reach the country through
diminishing remittances and declining exports. Armenia's fledging
prosperity is likely to be severely tested in the difficult years
ahead, and the country's best hope for weathering the crisis lies
in further developing its small and medium enterprises, EBRD says in
its statement.
Under these circumstances, EBRD will uphold its commitment to support
private micro, small and medium-sized enterprises by providing
necessary financing for the development of this sector through local
partner banks.
At the same time, EBRD vows staunch support to Armenian banks
by offering credits for on-lending, and by introducing such new
products as energy efficiency loans. EBRD will selectively pursue
equity participation in Armenia's leading banks and will encourage
consolidation of the banking sector.
In the public sector, EBRD will also support projects w hich promote
transition and sector reform.
EBRD strategy notes that progress in structural reform in Armenia
has slowed down in recent years, and that significant challenges
need to be addressed to promote an investment-friendly environment
in the country. The Bank has identified a number of important issues
that need to be addressed, including diversification of the Armenian
economy, improving the competitiveness of export-oriented production,
promoting competition and limiting monopolies, tackling corruption,
strengthening the financial sector and promoting commercialisation
of public infrastructure.
To maximise the benefits of its investments in Armenia, the Bank will
maintain policy dialogue with local authorities in order to advance
structural and legislative reforms in the country, which will also
increase Armenia's investment appeal among potential investors.
Over the past four years, EBRD's investment in Armenia has more than
quadrupled and reached 125 million Euro across 43 projects. EBRD's
pipeline for next two years in Armenia includes over 30 projects,
for investments in excess of 180 million.
EBRD is the largest single investor in Armenia. To date the Bank has
committed over 240 million Euro in 64 projects in all major sectors
of the economy.
Owned by 61 countries and two intergovernmental institutions, EBRD
is supporting the development of market economies and democracies
from Central Europe to Central20Asia.