OFID supports international trade and SMEs in Armenia

Vienna, Austria, July 17, 2017. The OPEC Fund for International Development (OFID) has signed a US$15 million loan agreement with Inecobank CJSC of the Republic of Armenia. The transaction represents OFID’s fifth loan to the bank and was signed in June by OFID Director-General Suleiman J. Al-Herbish and Acting CEO of Inecobank Garnik Tadevosyan.

“A solid financial sector underpins economic stability and growth, and is vital to poverty reduction,” said Al-Herbish. “OFID is committed to supporting MSMEs, channeling funds through financial intermediaries such as regional development banks, commercial banks, leasing companies, microfinance institutions and investment funds. This loan to Inecobank is in line with our commitment to developing countries across the globe.”

OFID’s loan will be used to support the international trade activities of small and medium enterprises (SMEs) in Armenia. Commenting on the loan, OFID’s Head of Private Sector and Trade Operations Tareq Alnassar said: “We have been working with Inecobank since 2008 and as the leading SME bank in the country, it’s an ideal long-term partner for OFID.” The existing relationship has supported the financial sector, SMEs and international trade in Armenia via four OFID-funded loans.

Tadevosyan said: “Inecobank has been closely cooperating with OFID for almost 10 years and we are glad to assert that this new loan agreement is a result of lasting cooperation and a new step toward efficient partnership in the future.”

SMEs constitute the single largest contributor to Armenia’s GDP and play an important part in international trade, accounting for more than 18 percent of all exports. By helping to strengthen the competitiveness of the domestic private sector and supporting international trade at the same time, OFID is contributing to Armenia’s ability to encourage a more broad-based economy, reduce vulnerability to external factors and achieve sustainable growth.