Non-revolving, purpose-specific credit line for AraratBank OJSC to support microfinance in Armenia
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Armenia

Non-revolving, purpose-specific credit line for AraratBank OJSC to support microfinance in Armenia

Industry:
Finance
Financing type:
Credit line
Year:
2018
Status:
Current
$6m
Project amount

Project overview

A non-revolving, purpose-specific credit line for AraratBank OJSC’s microfinance support programme in Armenia.

Sustainable development and market economy impact

Priority sector: The project is in the financial sector. It may expand the borrower’s business lending and customer base and thereby support the real economy.

The financing will support microfinance in Armenia. Small-business support is one means of promoting sustainable economic development.

Subprojects are to operate in manufacturing, services and trade.

Priority product: The borrower will receive a non-revolving credit line.

Socioeconomic and environmental impact: The subprojects will support small businesses, but information about their specific socioeconomic and environmental effects is unavailable. The financing may indirectly support the real economy, employment, household welfare and tax revenue.

Innovation potential: Information about the subprojects’ innovation is unavailable, and the likelihood of introducing new technologies is minimal.

Development institution capital: No cooperation with development institutions is planned under the project.

Investment mobilisation: No additional investment is envisaged.

Integration effect

Mutual investment: The project is not expected to increase investment between the Bank’s member states.

Mutual trade: The project is not expected to increase trade between the Bank’s member states.

Cross-border production chains: No information is available on the creation or support of cross-border production links.

Project goals and objectives

Goal 1
Creating favourable conditions for the sustainable development of micro and small businesses in Armenia, increasing their competitiveness in domestic and international markets, developing the infrastructural and institutional foundations of a market economy, and providing financial support to micro and small enterprises.
Goal 2
Enabling the establishment, expansion, modernisation and diversification of the production base of micro and small businesses.
Goal 3
Creating new jobs and preserving existing ones.
Goal 4
Creating employment opportunities and developing trade and small-scale manufacturing.
Goal 5
Increasing tax revenues for the Republic of Armenia's budget.
Goal 6
Providing Armenia's financial institutions with the funds needed to develop microfinance and small businesses.

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Non-revolving, purpose-specific credit line for AraratBank OJSC to support microfinance in Armenia
Financing type:
Credit line
Industry:
Finance
Armenia
2018
Status: Current
$ 6 m
Project amount
Project overview

A non-revolving, purpose-specific credit line for AraratBank OJSC’s microfinance support programme in Armenia.

Sustainable development and market economy impact

Priority sector: The project is in the financial sector. It may expand the borrower’s business lending and customer base and thereby support the real economy.

The financing will support microfinance in Armenia. Small-business support is one means of promoting sustainable economic development.

Subprojects are to operate in manufacturing, services and trade.

Priority product: The borrower will receive a non-revolving credit line.

Socioeconomic and environmental impact: The subprojects will support small businesses, but information about their specific socioeconomic and environmental effects is unavailable. The financing may indirectly support the real economy, employment, household welfare and tax revenue.

Innovation potential: Information about the subprojects’ innovation is unavailable, and the likelihood of introducing new technologies is minimal.

Development institution capital: No cooperation with development institutions is planned under the project.

Investment mobilisation: No additional investment is envisaged.

Integration effect

Mutual investment: The project is not expected to increase investment between the Bank’s member states.

Mutual trade: The project is not expected to increase trade between the Bank’s member states.

Cross-border production chains: No information is available on the creation or support of cross-border production links.

Project goals and objectives
Goal 1
Creating favourable conditions for the sustainable development of micro and small businesses in Armenia, increasing their competitiveness in domestic and international markets, developing the infrastructural and institutional foundations of a market economy, and providing financial support to micro and small enterprises.
Goal 2
Enabling the establishment, expansion, modernisation and diversification of the production base of micro and small businesses.
Goal 3
Creating new jobs and preserving existing ones.
Goal 4
Creating employment opportunities and developing trade and small-scale manufacturing.
Goal 5
Increasing tax revenues for the Republic of Armenia's budget.
Goal 6
Providing Armenia's financial institutions with the funds needed to develop microfinance and small businesses.