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ARMENIA GETS $65 MILLION LOAN FROM ASIAN DEVELOPMENT BANK
Tendersinfo News
November 28, 2011 Monday 6:30 AM EST
According to the Asian Development Bank s (ADB) released statement,
it has agreed to provide $65 million loan for a period of five years
to help Armenia enlarge its small and medium-scale enterprise (SME)
segment, which is crucial for driving inclusive growth, increasing
employment, and reducing poverty.
The will be allocated to four Armenian banks which are ACBA Credit
Agricole Bank, Ardshininvestbank, Ameriabank, and Inecobank. These
four banks have robust monetary power and are dedicated to extend
their lending services to SMEs.
These Armenian banks will receive this amount to facilitate finances
to the small- and medium-scale enterprises (SMEs) which constitute
about 98% of all businesses and the country s gross domestic product
s as well as employment opportunity s healthy above 40% is contributed
by this sector.
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 the Resident Representative in Armenia
David Dole. Helping smaller firms to grow will create jobs and boost
incomes as well as help Armenia diversify its economy.
Though bank loan is presented to the Armenian SME sector but is far
from fulfilling the requirements. The financial support to smaller
businesses has been capped from the brake in payments following the
2009 economic heartbreak and the banks unprecedented unwillingness
to loan the smaller entities. Simultaneously, banks also experience
problems in tracing medium-period finance to offer long-period loans
to SMEs that required resources for investment to enhance output,
said ADB.
The ADB will also help the banks advance their capacity building
for serving the SMEs in a far-sighted and nonstop way by offering
expertise.
The loan program includes many inventive qualities, like offering
at least a certain amount of loans for businesses outside Yerevan,
to bring equal development along with ensuring gender equality.
>From over a decade, the Armenian government has been putting efforts
to enlarge the SME segment and is currently running a SME national
scheme which will form the path for its future growth. The government
is keen to construct a robust SME segment, as well as will promote
private sector moves such as ADB s program by offering banks with
higher lending options for the SME division.
The Manila-based ADB Was set up in 1966 and it is devoted to eradicate
poverty in Asia and the Pacific via comprehensive economic as well as
eco-friendly continuous development, plus regional amalgamation. It is
possessed by 67 members, while 48 is from the region itself. In 2010,
ADB grants, together with, co-financing, stood at $17.51 billion.
Moreover, ADB s currently undergone Trade Finance Program has backed
trade worth $2.8 billion.
Tendersinfo News
November 28, 2011 Monday 6:30 AM EST
According to the Asian Development Bank s (ADB) released statement,
it has agreed to provide $65 million loan for a period of five years
to help Armenia enlarge its small and medium-scale enterprise (SME)
segment, which is crucial for driving inclusive growth, increasing
employment, and reducing poverty.
The will be allocated to four Armenian banks which are ACBA Credit
Agricole Bank, Ardshininvestbank, Ameriabank, and Inecobank. These
four banks have robust monetary power and are dedicated to extend
their lending services to SMEs.
These Armenian banks will receive this amount to facilitate finances
to the small- and medium-scale enterprises (SMEs) which constitute
about 98% of all businesses and the country s gross domestic product
s as well as employment opportunity s healthy above 40% is contributed
by this sector.
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 the Resident Representative in Armenia
David Dole. Helping smaller firms to grow will create jobs and boost
incomes as well as help Armenia diversify its economy.
Though bank loan is presented to the Armenian SME sector but is far
from fulfilling the requirements. The financial support to smaller
businesses has been capped from the brake in payments following the
2009 economic heartbreak and the banks unprecedented unwillingness
to loan the smaller entities. Simultaneously, banks also experience
problems in tracing medium-period finance to offer long-period loans
to SMEs that required resources for investment to enhance output,
said ADB.
The ADB will also help the banks advance their capacity building
for serving the SMEs in a far-sighted and nonstop way by offering
expertise.
The loan program includes many inventive qualities, like offering
at least a certain amount of loans for businesses outside Yerevan,
to bring equal development along with ensuring gender equality.
>From over a decade, the Armenian government has been putting efforts
to enlarge the SME segment and is currently running a SME national
scheme which will form the path for its future growth. The government
is keen to construct a robust SME segment, as well as will promote
private sector moves such as ADB s program by offering banks with
higher lending options for the SME division.
The Manila-based ADB Was set up in 1966 and it is devoted to eradicate
poverty in Asia and the Pacific via comprehensive economic as well as
eco-friendly continuous development, plus regional amalgamation. It is
possessed by 67 members, while 48 is from the region itself. In 2010,
ADB grants, together with, co-financing, stood at $17.51 billion.
Moreover, ADB s currently undergone Trade Finance Program has backed
trade worth $2.8 billion.