The European Bank for Reconstruction and Development (EBRD) has provided $8m to ArmSwissBank to supports private businesses in Armenia.
The EBRD is increasing the availability of financing with a $5m credit line and a $3m trade finance facility to ArmSwissBank for small and medium companies (SMEs).
Established in 2004, ArmSwissBank is a growing financial institution, operating as a private, corporate and investment bank, with a strong emphasis on brokerage services and liquidity management for Armenia’s financial sector.
The EBRD support aims to diversify the bank’s funding base and support its strategy to develop its SME lending activities.
The proceeds of the EBRD credit line will be on-lent to small and medium entrepreneurs in Armenia.
In addition, the EBRD is extending a $3m trade finance facility to ArmSwissBank under its Trade Facilitation Programme (TFP), which will allow the bank to enhance the support provided to local import-export oriented companies by guaranteeing their international trade finance and factoring obligations and providing pre-export and post-export financing, as well as financing of working capital needed to conclude foreign trade contracts, and other facilities.
The EBRD loan is part of the Bank’s Armenia Multi-Bank Framework Facility II, aimed at supporting the increase of financial intermediation in Armenia through medium-term credit lines to local commercial banks for on-lending to commercial customers.
Since the facility was launched in 2006, over $110 million was disbursed to 11 banks operating in Armenia.