Signing ceremony – EFSE Annual Meeting 2014
EFSE receives additional investment from the Central Bank of Armenia and signs new loan agreements with Armenian partner lending institutions ACBA Bank and Araratbank
The EFSE Annual Meeting was the background to a signing ceremony on 18 June in Yerevan, Armenia, in which the EFSE signed an investment contract with the Central Bank of Armenia regarding an additional investment in the Fund as well as loan agreements with ACBA Bank and Araratbank, the EFSE’s Armenian partner lending institutions.
The EFSE received an additional AMD 300 million (approximately EUR 0.5 million) in capital from Small and Medium Business Credit Support CJSC (SMBCS), a subsidiary of the Central Bank of Armenia, to strengthen the Armenia Local Currency Facility. The Facility was created to support and promote local currency lending to micro and small enterprises (MSEs) in the country.
In addition, the Fund signed its first senior synthetic loan agreement denominated in Armenian drams with ACBA-Crédit Agricole Bank (ACBA Bank) in the equivalent of USD 15 million. This loan will further strengthen ACBA Bank’s position as one of the leading banks in Armenia, enabling it to finance over 10,000 loans to micro and small-sized businesses, including local agricultural producers and individual farmers.
The European Fund for Southeast Europe (EFSE) also expanded its partnership with Araratbank OJSC (Araratbank) by issuing an additional USD 12 million senior loan to fund sub-loans destined for micro and small enterprises (MSEs) in Armenia.