ADB extends debt facilities totaling up to $65 million to Armenian banks for on-lending to SMEs. ACBA Credit Agricole, Ameriabank, Ardshininvestbank, and Inecobank were selected to be the banks proposed to participate in the program based on their credit profiles, their willingness and ability to expand their SME portfolios, and ADB's potential to add value under and beyond the program.
|Project Name||ARM: SME FINANCE PROGRAM|
ACBA CREDIT AGRICOLE BANK
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance - Banking systems and nonbank financial institutions - Small and medium enterprise finance and leasing
|Gender Equity and Mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Stefan Hruschka|
|Description||ADB extends debt facilities totaling up to $65 million to Armenian banks for on-lending to SMEs. ACBA Credit Agricole, Ameriabank, Ardshininvestbank, and Inecobank were selected to be the banks proposed to participate in the program based on their credit profiles, their willingness and ability to expand their SME portfolios, and ADB's potential to add value under and beyond the program.|
|Objectives and Scope||The program increases the capacity of local banks to provide SMEs with longer-term financing to support SME growth and productivity. Supporting the growth of SMEs will increase the contributions made by SMEs to GDP, labor, and key economic sectors. SMEs are drivers of economic growth, private sector development, and economic diversification. They comprise a substantial proportion of private sector activities, particularly outside Yerevan where poverty rates are higher, and can be a source of building competitiveness. The promotion of SMEs leads to higher income levels for SME owners and employees, and aids in job creation, which facilitates poverty reduction and broad-based growth.|
|Linkage to Country/Regional Strategy||
Strategy 2020 identifies private sector development as one of the five drivers of change to alleviate poverty in the region. Financial sector development is noted as one of the five core specializations that will be undertaken in support of this agenda. The Armenian government's broad macroeconomic objectives repeatedly emphasize private sector operations as essential to Armenia''s growth. ADB''s Economic Report and Interim Operational Strategy, 2006 -2009 for Armenia cites that an underdeveloped finance sector, including lack of access to long-term financing, is a major bottleneck to private sector development. The Financial Sector Operational Plan calls for enhanced focus on the traditionally underserved (including SMEs) to achieve inclusive growth, one of the three strategic agendas of Strategy 2020. Finally, PSCM's Business Plan and Priorities, 2010 -2012, directs PSCM to assist private banks with loans, equity, and TA to encourage and support market participants at the forefront.
The SME Finance Program supports both private and financial sector development, as directed by ADB's country and sector strategies, by increasing the capacity and ability of Armenian banks to expand lending to urban and non-urban SMEs, which comprise an important and underserved portion of Armenia''s economy.
Summary of Environmental and Social Aspects
|Stakeholder Communication, Participation, and Consultation|
Timetable for assistance design, processing and implementation
|Concept Clearance||04 Jul 2011|
|Due Diligence||30 Aug 2011|
|Credit Committee Meeting||19 Sep 2011|
|Approval||22 Nov 2011|
|PDS Creation Date||29 Aug 2011|
|Last PDS Update||16 Sep 2014|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Senior Loan to ACBA Credit Agricole Bank - Small and Medium-Sized Enterprise Finance Program: Extended Annual Review Report||Extended Annual Review Reports||Sep 2016|
|ՓՄՁ ՖԻՆԱՆՍԱՎՈՐՄԱՆ ԾՐԱԳԻՐ : Ծրագրի տեղեկատվական թերթիկ||Translated PDS||May 2015|
|Proposed Senior Loans for ACBA Credit Agricole Bank||Reports and Recommendations of the President||Oct 2011|
|Proposed SME Investment Program||Initial Poverty and Social Analysis||Aug 2011|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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