Armenia: The EU bank supports small medium-sized businesses
18 November 2016
The European Investment Bank (EIB) is lending EUR 50 million to finance projects promoted by SMEs and MidCap companies in Armenia.
The EIB loan is being provided to the Central Bank of the Republic of Armenia, which will make the EIB funds available to eligible SMEs and MidCap companies throughout the country via numerous financial intermediaries, including banks and universal credit organisations. The loan is further EU measure to support Armenian businesses and is provided in the context of the EU4 Business initiative.
EIB Vice-President Jan Vapaavuori stated: “EIB funds intermediated through the Central Bank of the Republic of Armenia, a well-established partner of the EIB, will improve the access of Armenian SMEs and Mid-Caps to long-term finance in local currency on favourable terms. This will contribute to the diversification of the Armenian economy and private-sector development and will have a positive influence on job creation in the country”.
Chairman of the Central Bank of Armenia Arthur Javadyan, commented: “I am confident that this loan will mimic the success story of its predecessor by its effectiveness and accuracy in targeting the access to finance for SMEs in Armenia.”
With this loan the EIB and the Central Bank of the Republic of Armenia are continuing their successful co-operation in support of Armenian small and medium-sized businesses. The previous EUR 50 million loan for SMEs,signed in 2014, has already been fully disbursed for eligible projects of Armenian SMEs and Midcaps. The EIB funds provided to the Central Bank of Armenia are currently available to SMEs and Midcaps in Armenia through 16 financial intermediaries. To date, more than 100 projects throughout the country have benefitted from them, in particular in the tourism and agri-food sectors. Under this existing loan, the participating financial intermediaries as well as small and medium businesses had an opportunity to benefit from related technical assistance activities funded by the Eastern Partnership Technical Assistance Trust Fund (EPTATF).
The EIB is providing the Institut Catalá de Finances (ICF) with a loan of up to EUR 250 million to support SMEs, the companies most vulnerable to the COVID-19 shock. The two institutions have signed the first EUR 150 million instalment of this financing agreement under an accelerated approval procedure put in place by the EIB in this emergency to ensure that the funds reach Spanish firms as quickly as possible. This is one of the first operations mounted under the EIB’s EUR 5 billion programme to safeguard European businesses in the face of the coronavirus crisis.
The EIB has signed a EUR 25 million, 20-year tenor, loan agreement with the Põhja-Eesti Regionaalhaigla or North Estonian Medical Centre (NEMC). The financing will support the new construction of a psychiatric clinic, as well as a new building to consolidate the pathology, oncology and haematology departments of the hospital, responding to an urgent need for better inpatient and outpatient facilities. Next to the EIB loan the project is financed by the Nordic Investment Bank, European Structural Funds, and is expected to benefit from an upcoming loan from the Council of Europe Development Bank (CEB).
The EIB is assisting the Madrid Region in its efforts to tackle the COVID-19 health emergency. The EU bank is providing a EUR 600 million loan on favourable terms to enable the authorities to adapt Madrid’s health facilities and cope with the additional health costs caused by the pandemic.