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FINCA Armenia - Micro Finance/SME

Armenia | Financial Institutions

Identification Code:: OP/13/0047
Total Operation Cost:: 5.000.000 USD
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

5.000.000 USD – 11 Apr 2014
: BSTDB Signed Amount – Signed Date

5.000.000 USD – 29 May 2014
: Status:
Completed
Description and Purpose of the Operation:: A USD 5 million medium-term Microcredit/SME Facility to FINCA will be made available in two Tranches of USD 3 million and USD 2 million each. The proceeds of the facility shall be used by the Borrower exclusively for the purpose of financing eligible Micro and SME Sub- Loans.
Countries of Operation:: Armenia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Universal Credit Organization "FINCA" CJSC (UCO FINCA Armenia)
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: Microfinance has proven a useful tool to fight poverty and ensure sustainable development and increased economic activity for portions of the lowest income segment of the population through, development of micro and small businesses and their entrepreneurs consequently, employment creation and decrease of moral poverty. The facility is expected to have modest but favorable economic benefits to the Armenian economy, the most relevant being additional tax revenue gains. The regional cooperation element is similarly expected to be modestly favorable. Other BSTDB countries are important trade partners for Armenia.
Environmental Classification and Impact:: Micro-financing in general, due to its nature is not likely to generate any significant environmental and social risks and negative impacts, and instead is recognized to have positive social effects and play an important role in creation of employment opportunities and revenue generation among the lowest-income households, especially in the rural areas. The corporate SEMS applied by FINCA Armenia is considered appropriate for managing the potential environmental and social risks and negative impacts associated with its micro-financing activities.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org