fbpx 51184-001: Strengthening the Banking Sector for Financial Inclusion | Asian Development Bank

Armenia: Strengthening the Banking Sector for Financial Inclusion

Nonsovereign (Private) Project | 51184-001 Status: Approved

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.

Project Details

Project Officer
Cheema, Asif Private Sector Operations Department Request for information
Country
  • Armenia
Sector
  • Finance
 
Project Name Strengthening the Banking Sector for Financial Inclusion
Project Number 51184-001
Borrower/Company Ameriabank CJSC
Country Armenia
Location Nation-wide
Type or Modality of Assistance
3575 Loan Ordinary capital resources USD 30.00 million Approved
7521 Equity Ordinary capital resources USD 30.00 million Approved
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
Project Sponsor(s)
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).

Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI-C
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.

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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

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Related Publications

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