Credit line for Ardshinbank CJSC to finance SMEs in Armenia
Project overview
A credit line to finance SMEs in Armenia.
Sustainable development impact
The project supports the sustainable development of Armenian SMEs, in line with the Bank’s SME Support Programme.
It is expected to contribute significantly to sustainable economic growth. SMEs are important to the broader economy, and additional lending can help them develop.
Given the relatively small size of Armenia’s economy, SME development is an important task for the Bank in the country.
The credit line includes working capital loans. SMEs can adopt new technologies quickly, adapt production and upgrade equipment with smaller capital outlays and shorter payback periods.
The Bank’s financing is expected to improve the borrower’s investment appeal, reputation and corporate governance. It may also help the borrower obtain international credit ratings, attract investors and expand its activities.
Lending from international organisations may strengthen the borrower’s governance and provide access to lower-cost financing. SME development will also help strengthen Armenia’s market infrastructure.
Integration effect
Financing SME export and import transactions may increase trade between Armenia and the Bank’s other member states.
