Non-revolving, purpose-specific credit line for AraratBank OJSC to support microfinance in Armenia
Project overview
A non-revolving, purpose-specific credit line for AraratBank OJSC’s microfinance support programme in Armenia.
Sustainable development and market economy impact
Priority sector: The project is in the financial sector. It may expand the borrower’s business lending and customer base and thereby support the real economy.
The financing will support microfinance in Armenia. Small-business support is one means of promoting sustainable economic development.
Subprojects are to operate in manufacturing, services and trade.
Priority product: The borrower will receive a non-revolving credit line.
Socioeconomic and environmental impact: The subprojects will support small businesses, but information about their specific socioeconomic and environmental effects is unavailable. The financing may indirectly support the real economy, employment, household welfare and tax revenue.
Innovation potential: Information about the subprojects’ innovation is unavailable, and the likelihood of introducing new technologies is minimal.
Development institution capital: No cooperation with development institutions is planned under the project.
Investment mobilisation: No additional investment is envisaged.
Integration effect
Mutual investment: The project is not expected to increase investment between the Bank’s member states.
Mutual trade: The project is not expected to increase trade between the Bank’s member states.
Cross-border production chains: No information is available on the creation or support of cross-border production links.
