Release date: 10 October 2024
Promoter – Financial Intermediary
ARMSWISSBANK CJSCLocation
Description
The operation consists in a partial portfolio guarantee to Armswissbank in Armenia under the EU4Business Guarantee Facility.
Additionality and Impact
The proposed partial portfolio guarantee to Armswissbank is intended to improve access to finance for micro, small and medium enterprises (MSMEs) in Armenia.
Firms in Armenia consider access to finance to be one of the most significant obstacles to doing business. This market failure emanates from high interest rates, difficulties to assess credit risks, and foreign currency risk in a highly dollarized economy. Inclusive investments face additional constraints, including low level of awareness by clients and banks and scarcity of long-term funding.
The operation will tackle challenges by providing guarantee to Armswissbank in order to enhance lending to MSMEs at attractive terms and conditions. Clients will benefit through loans that include a transfer of financial benefits to incentivise investments.
The operation would help Armswissbank to increase its risk absorption capacity and support the implementation of projects that would otherwise be declined. The bank's proven implementation capacity and experience, strong product palette and very good financial standing make Armswissbank an effective intermediary for the partial portfolio guarantee, and key actor for increasing access to finance and promoting inclusive investments for local MSMEs.
The operation will contribute to several SDGs.
Objectives
The aim is to enable Armswissbank to improve lending terms and conditions and thus provide wider access to finance for micro, small- and mediums-sized enterprises in the country.
Comments
Please proceed to generate the accompanying letter to the client for his signature authorising the Web publication.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 2 million
Total cost (Approximate amount)
EUR 20 million
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 28/02/2025
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).