fbpx 52168-001: Increasing Gender-Inclusive Lending to Micro, Small, and Medium-Sized Enterprises Project | Asian Development Bank

Armenia: Increasing Gender-Inclusive Lending to Micro, Small, and Medium-Sized Enterprises Project

Nonsovereign (Private) Project | 52168-001 Status: Proposed

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 Details

Project Officer
Rohner, Tina Request for information
Country
  • Armenia
Sector
  • Finance
 
Project Name Increasing Gender-Inclusive Lending to Micro, Small, and Medium-Sized Enterprises Project
Project Number 52168-001
Borrower/Company Armeconombank OJSC
Country Armenia
Location Nation-wide
Type or Modality of Assistance
3899 Loan Ordinary capital resources USD 15.00 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 Gender equity
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Rohner, Tina
Project Sponsor(s)
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.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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