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Armeconombank SME 3

Armenia | Financial Institutions

Identification Code:: OP/17/0007
Total Operation Cost:: 10.000.000 USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 USD – 11 Jul 2019
: BSTDB Signed Amount – Signed Date

10.000.000 USD – 27 Aug 2019
: Status:
Completed
Description and Purpose of the Operation:: Armeconombank SME 3
Countries of Operation:: Armenia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: 3rd SME Loan Facility to ARMECONOMBANK OJSC
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: The operation involves a loan for on-lending to small and medium sized enterprises (SMEs) that is expected to have modest but favorable economic benefits for the Armenian economy. The most relevant of these is the additional tax revenue gains from increased economic activity resulting from the financing provided. In addition, the financing will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly modest but positive. Other BSTDB countries are important trade partners for Armenia, so to the extent benefiting SMEs engage in export activities, there will be regional cooperation benefits.
Environmental Classification and Impact:: Armeconobank is a former Borrower of BSTDB and its environmental and social (E&S) performance during the course of the previous loans has been assessed as satisfactory. The Borrower has developed and implemented a comprehensive E&S management system consisting of the E&S Policy, E&S Risk Management Plan, E&S Exclusion List, as well as specific requirements to ensure compliance with EBRD standards towards Financial Intermediaries. The E&S management system is well-integrated in the portfolio management and is applied systematically to the credit cycle.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org