YEREVAN—The European Bank for Reconstruction and Development and Ameriabank CJSC have signed a financing agreement in the sum of $12 million, of which $9 million will be directed to financing of small and medium sized enterprises and $3 million to financing of the renewable energy and energy efficiency projects in Armenia. The financing will be provided in either US dollars or Armenian drams.
SMEs play an essential role for the development and stability of Armenia’s economy, making up 43 percent of the country’s gross domestic product and most of its employment. The loan facility provided by the EBRD will support the growth in business activities in Armenia by facilitating access to finance for local SMEs. Renewable energy financing will contribute to the development of the clean energy sector while ensuring efficient use of energy amongst the industrial and residential sector clients.
The successful cooperation between the EBRD and Ameriabank started five years ago and since then EBRD has extended $42 million worth of financing facilities to its partner bank.
“We are pleased to continue our successful collaboration with Ameriabank in further supporting the development of private businesses in Armenia. This transaction will increase the availability of long-term local currency financing to the entrepreneurs enabling them to avoid exchange rate risks. In addition, it will help in promoting energy efficiency investments and renewable energy initiatives in Armenia, benefiting the economy in efficient utilization of energy, ” said Valeriu Razlog, Head of Yerevan Office, EBRD.
“Ameriabank highly appreciates cooperation with EBRD and believes that fundraising will create new opportunities for Ameriabank’s loan portfolio diversification. Supporting SME is a cornerstone of Ameriabank’s credit policy. This loan facility will help to increase SME lending volume in Ameriabank and will trigger development of SMEs in Armenia and enhancement of their competitiveness in local and international markets. Financing will enable to increase also power production volume of the country and will contribute to productive use of energy resources and increase of energy efficiency,” said Artak Hanesyan, CEO, Ameriabank.
About EBRD:
The European Bank for Reconstruction and Development (EBRD), owned by 64 countries and two intergovernmental institutions, is an international financial institution that supports projects from central Europe to central Asia and beyond. Investing primarily in private sector clients whose needs cannot be fully met by the market, the Bank fosters transition towards market economies. The EBRD has been active in Armenia since the country’s independence and to date has invested over €613 million. Follow us on the Facebook and Twitter or visit www.ebrd.com
About Ameriabank:
Ameriabank is a dynamically developing bank and one of the most stable financial institutions in Armenia. The first investment bank in Armenia, Ameriabank has been providing a large package of innovative investment services since 2007. Now Ameriabank is a universal bank, offering in addition to investment services also corporate and retail banking services in a comprehensive set of banking solutions.
For further information, visit: www.ameriabank.am.
