ARMENIA MSME RESILIENCE FACILITY - INECOBANK

Promoter – Financial Intermediary

INECOBANK CJSC

Location

• Armenia

Description

The facility consists of a loan to Inecobank to support micro, small and medium sized enterprises (MSMEs) and Midcaps in Armenia.

Additionality and Impact

The operation aims to finance eligible small and medium sized investments undertaken by MSMEs and Mid-Caps in Armenia, thereby contributing to economic resilience, employment generating activities and alleviating the economic burden of the recent displacement crisis in the country. MSMEs make up the vast majority of firms in Armenia and, as such, play a vital role in creating and safeguarding employment. Lack of access to long-term finance has been identified as one of the most significant obstacles to the expansion of MSMEs, and the proposed Facility is expected to address these problems.

Objectives

The aim is to enhance access to finance to the target beneficiaries implementing eligible projects in the country.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 40 million

Total cost (Approximate amount)

not applicable

Environmental aspects

Inecobank should take all requisite measures to ensure that the procedures carried out by the final beneficiaries comply with the national legislation, the EIB's Environmental and Social Standards as well as the international treaties and conventions signed and ratified by or otherwise applicable and binding in Armenia.

Procurement

Inecobank should take all requisite measures to ensure that all the procurement procedures carried out by the final beneficiaries comply with the national legislation, in line with the EIB's Guide to Procurement.

Status

Signed - 8/10/2024