By Loretta Martikian
The European Bank for Reconstruction and Development (EBRD) is providing a €5 million(US$5.6million) financial support package to Armeconombank in Armenia to facilitate the private sector’s transition to more sustainable, low-carbon and climate-resilient practices. The project is supported by the European Union (EU), with grant incentives allocated through Armeconombank.
The package is provided under the EU4Business-EBRD credit line, with incentives for on-lending to local small and medium-sized enterprises (SMEs) with export potential for investments in climate change mitigation and adaptation. It will also help SMEs to upgrade technologies and services to EU standards while promoting the use of green technologies. This is the fourth project to be signed in Armenia under the programme.
The EU4Business-EBRD credit line is a flagship initiative, helping local companies increase their competitiveness at home and abroad by upgrading their production facilities and processes to EU standards. The companies will be able to improve the working conditions of their employees and foster environmental sustainability. At least 70 per cent of the loan proceeds will be used to finance investments in green technologies in accordance with the EBRD’s Green Economy Transition (GET) approach. Borrowers are eligible to receive incentive grants and technical advice, both funded by the EU under its EU4Business initiative. The programme is also available in Georgia, Moldova and Ukraine.
EBRD Head of Armenia, Dimitri Gvindadze said: “We are pleased to step up our support for SMEs in Armenia together with our long-standing partner Armeconombank. The funding aims to facilitate the competitiveness of local firms in Armenia by helping to invest in modern technology that will allow companies to strengthen their operations locally and take advantage of international trade opportunities.”
Head of Delegation of the EU to Armenia, Ambassador Andrea Wiktorin said: “The EU is committed to supporting small businesses’ growth and sustainability. To this end, the EU4Business-EBRD facility supports SMEs with impact financing for green technologies. The overall contribution of the EU to the EU4Business-EBRD facility covering different Armenian banks is €6 million.”
The EBRD is a leading institutional investor in Armenia. The Bank has invested more than €1.66 billion through 195 projects in the country’s financial, corporate, infrastructure and energy sectors, with 91 per cent of those investments in the private sector.
