The transaction involves a loan of up to $15,000,000 to Armeconombank OJSC (AEB) for the Increasing Gender-Inclusive Lending to Micro, Small, and Medium-Sized Enterprises Project in Armenia.
|Project Name||Increasing Gender-Inclusive Lending to Micro, Small, and Medium-Sized Enterprises Project|
|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||Gender equity|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Rohner, Tina|
|Description||The transaction involves a loan of up to $15,000,000 to Armeconombank OJSC (AEB) for the Increasing Gender-Inclusive Lending to Micro, Small, and Medium-Sized Enterprises Project in Armenia.|
|Objectives and Scope||The project entails the Asian Development Bank (ADB) providing longer-tenor financing to AEB to support AEB''s lending operations to micro, small, and medium-sized enterprises (MSMEs) in Armenia, with a focus on areas outside the national capital, Yerevan, and on MSMEs owned by women. By improving access to finance, the project is expected to support the expansion of small businesses and the generation of additional jobs, which in turn will contribute to poverty reduction.|
|Linkage to Country/Regional Strategy||AEB''s emphasis on lending to segments with high potential for employment and income generation will support inclusive growth. ADB funds will help AEB provide loans to MSMEs to meet their investment needs and support overall growth. The increased focus on lending to MSMEs owned by women delivers the strategic operational priority of increasing women''s economic empowerment as articulated in ADB''s operational priority 2 (accelerating progress in gender equality). This is consistent with the government''s efforts to promote growth and economic diversification, and with ADB''s country partnership strategy for Armenia, 2019- 2023.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||AEB''s social and environmental management policy guides the bank's activities and operations and defines its principles and approach regarding environmental and social assessment procedures. The management responsibilities in upholding this policy are also laid out in the document. The policy commits AEB to the adoption of robust safeguards and management practices, aligned with the practices of international financial institutions, to avoid, minimize, and mitigate adverse environmental and social impacts associated with subprojects.|
|Involuntary Resettlement||AEB''s portfolio includes financial services for trade, food and service, production, agriculture, and tourism. A few transactions of 10,000 ,20,000 involve transport and communications, while some transactions of 100,000, 200,000 involve construction companies. These business activities are unlikely to entail any physical or economic displacement as a result of land acquisition using eminent domain laws, or restrictions of access on lands or natural resources, or any displacement of nontitled users of privately purchased land.|
|Indigenous Peoples||The project is not expected to generate any impacts on indigenous peoples.|
|Stakeholder Communication, Participation, and Consultation||AEB''s market analysis involves interactions with current and prospective clients to understand their needs and to develop products and outreach activities that will ensure that these needs are met. AEB will need to ensure that its environmental and social management system (ESMS) includes the development of mitigation and management measures through meaningful stakeholder consultation.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||24 Jul 2018|
|Credit Committee Meeting||17 Jan 2020|
|Approval||24 Mar 2020|
|Last PDS Update||25 Mar 2020|
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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|Title||Document Type||Document Date|
|Increasing Gender-Inclusive Lending to Micro, Small, and Medium-Sized Enterprises Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Mar 2020|
|Increasing Gender-Inclusive Lending to Micro, Small, and Medium-Sized Enterprises Project: FAST Report||Faster Approach to Small Nonsovereign Transactions||Mar 2020|
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.
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ADB, Armeconombank Sign $15 Million Loan to Increase Lending for Women-Led BusinessesThe Asian Development Bank (ADB) and Armeconombank OJSC (AEB) have signed a $15 million loan to support lending to women-entrepreneurs owning micro, small, and medium-sized enterprises (MSMEs) in Armenia, specifically in areas...