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Summary sheet
- Credit lines - Credit lines
Funding to smaller financial intermediaries in countries of the Southern Caucasus to reach out to micro, small and medium enterprises (MSMEs) that currently face difficulties to access finance.
The aim of the project is to enhance access to finance for the target Armenian beneficiaries and contribute to their financial inclusion, supporting especially micro and small businesses owned or managed by women, in line with the 2X Challenge Criteria. As such, the operation is expected to achieve a high development impact in Armenia.
The operation aims to widen the choice of Micro, Small and Medium Enterprises (MSMEs) for accessing finance by EIB lending through smaller local Financial Intermediaries (FIs) in the countries of the Southern Caucasus. It promotes the "Post 2020 Eastern Partnership priorities" of the EU, is fully aligned to the guidelines for EFSD+ MSME investment window and national SME policies, and directly contributes to the delivery of the EU Flagships related to MSMEs in Armenia, Azerbaijan and Georgia.
MSMEs face hurdles to access finance emanating from information asymmetry, capacity constraints and externalities, resulting in financing terms, policies and procedures that discourage them from applying for loans. Smaller FIs have specialized in lending to MSMEs and have potential to scale and improve their financial offer to credit-constrained MSMEs, including underserved segments of the economy. The operation will unlock this potential by making available new funding at attractive conditions and TA to support product development. FIs will be able to increase their volume of lending to MSMEs and also to offer better financial terms (e.g. longer tenor, lower interest rate, lower collateral requirements), thus contributing to the sustainable and inclusive growth of the final beneficiaries. Finally, the operation aims at demonstrating the business opportunity for FIs in Southern Caucasus to invest and compete in the MSME segment.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Please proceed to generate the accompanying letter to the client for his signature authorising the Web publication.
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