Armenia: Strengthening the Banking Sector for Financial Inclusion
The proposed ADB assistance consists of (i) a proposed loan of up to $30,000,000 or the dram equivalent to Ameriabank CJSC (AMB) and (ii) a proposed equity investment of up to the dram equivalent of $30,000,000 in AMB both for the Strengthening the Banking Sector for Financial Inclusion in Armenia.
Private Sector Operations Department
Request for information
27 September 2017
|Project Name||Strengthening the Banking Sector for Financial Inclusion|
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance / Small and medium enterprise finance and leasing
|Gender Equity and Mainstreaming||Some gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Private Sector Financial Institutions Division|
|Responsible ADB Officer||Cheema, Asif|
|Description||The proposed ADB assistance consists of (i) a proposed loan of up to $30,000,000 or the dram equivalent to Ameriabank CJSC (AMB) and (ii) a proposed equity investment of up to the dram equivalent of $30,000,000 in AMB both for the Strengthening the Banking Sector for Financial Inclusion in Armenia.|
|Objectives and Scope||ADB will support AMB in providing funding to this important customer segment and expanding new product offerings, thus supporting overall economic growth, job creation, and diversification.|
|Linkage to Country/Regional Strategy||
Linkage to Country Strategy: Under ADB's Midterm Review of Strategy 2020, ADB aims to strengthen its support for the finance sector by assisting the development of financial infrastructure, institutions, and products and services; and by promoting inclusive growth. AMB's emphasis on lending to segments with high potential for employment and income generation will support inclusive growth. ADB funds will help AMB provide loans to SMEs to meet their investment needs and support overall growth. This is consistent with the government's efforts to promote growth and economic diversification, and with ADB's country partnership strategy for Armenia, 2014 2018.
Linkage to Sector Strategy: The loan to and equity investment in AMB will continue ADB's efforts to develop Armenia's financial market and support SMEs. These efforts also complement sovereign programs in the finance sector, such as the Women's Entrepreneurship Support Sector Development Program (2012).
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The review of AMB's ESMS for the proposed loan and equity investment confirms that the existing ESMS includes provisions adequate to identify, screen, assess and address environmental and social impacts arising out of its existing and future portfolio. While AMB's policy, resources and capacity have been deemed adequate, due diligence found that AMB is unable to meet ADB's disclosure requirement for Category A subprojects. Therefore, no category A subprojects will be financed using ADB loan and equity proceeds.|
|Involuntary Resettlement||The involuntary resettlement related elements of AMB's ESMS were assessed in 2011 in compliance with ADB's SPS. AMB's ESMS screening and categorization form specifically tests for involuntary displacement impacts on subprojects. The ESMS includes procedures for ensuring involuntary displacement impacts are mitigated and managed by subborrowers in compliance with ADB's SPS and requirements of other lenders such as EBRD and the International Finance Corporation. AMB is an existing ADB client, has met past reporting requirements, and will continue to report annually on its ESMS and SPS compliance. No category A subprojects will be financed using ADB funds.|
|Indigenous Peoples||The project is not expected to generate any impacts on indigenous peoples.|
|Stakeholder Communication, Participation, and Consultation||AMB's market analysis involves interactions with current and prospective clients to understand their needs and to develop products and outreach activities that will ensure these needs are met. The technical assistance that will be provided separately seeks to enhance this capacity to more effectively meet stakeholder needs. For borrower subprojects with environmental and social risks and impacts, AMB ensures through its environmental and social management system (ESMS) that its subborrowers implement mitigation and management measures developed through meaningful stakeholder consultation.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||20 Jun 2017|
|Credit Committee Meeting||17 Aug 2017|
|Approval||27 Sep 2017|
|Last PDS Update||12 Jun 2019|
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 Access to Information Policy (AIP) 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|
|Բանկային հատվածի հզորացում՝ ֆինանսական ներառվածության նպատակով||Translated PDS||Jan 2018|
|Strengthening the Banking Sector for Financial Inclusion: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Oct 2017|
|Strengthening the Banking Sector for Financial Inclusion: Report and Recommendation of the President||Reports and Recommendations of the President||Sep 2017|
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 Access to Information Policy (AIP) 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.
Requests for information may also be directed to the InfoUnit.
ADB Loan, Equity to Ameriabank to Help Promote Financial Inclusion in ArmeniaADB Country Director for Armenia Mr. Shane Rosenthal attended AmeriaBank’s event to mark the partnership between ADB and Ameriabank.