Loan signing with Armenia’s Evocabank

In a rapidly growing economy access to finance is critical for businesses to benefit from surging demand for goods and services. Armenia recorded 6.5 percent growth in 2023 and is expected to grow another 4.5 percent this year, according to the European Bank for Reconstruction and Development. So the first US$10 million loan by the OPEC Fund to Armenia’s Evocabank could hardly have happened at a better time. 

CEO Karen Yeghiazaryan visited OPEC Fund President Abdulhamid Alkhalifa for the signing in late September at the institution’s Headquarters in Vienna and both sides stressed their commitment to establish a fruitful, long-term relationship. The loan will finance subloans to micro, small and medium-sized enterprises in Armenia with a special emphasis on agricultural businesses on the one hand and womenled enterprises on the other. 

Evocabank is an Armenian commercial bank established in 1990 in Yerevan and a branch network mostly in the metropolitan region. Evocabank ranks among the top 10 banks in Armenia and has built its business model around state-of-the-art technology. It is the first – and so far only – bank in Armenia to operate in a mobile-first format. 

OPEC Fund President Alkhalifa referenced this when he said: “When we first reviewed Evocabank’s loan application, it was immediately clear to us that we were engaging with a forward-thinking institution that embodies innovation, agility and a strong commitment to digital transformation. The cutting edge use of technology serves as a testament to Evocabank’s contributions in the Armenian financial sector.” 

Meanwhile, a visit by an OPEC Fund delegation led by President Alkhalifa to the Kazakh capital Astana in September provided the opportunity to deepen the relationship and explore new opportunities. In addition to bilateral meetings with Kazakhstan’s President Kassym-Jomart Tokayev, Minister of Energy Almassadam Satkaliyev and the chairman of the state holding company Samruk-Kazyna, Nurlan Zhakupov, President Alkhalifa also attended a roundtable hosted by the Arab Coordination Group (ACG). 

Kazakh companies presented priority projects for the ACG’s consideration. While the country is blessed with abundant natural resources, enormous investments are needed to make sustainable use of its national wealth. President Alkhalifa confirmed: “We are eager to support infrastructure development that will enable Kazakhstan to unlock its tremendous potential in key sectors such as energy and food security.” 

Preliminary talks revealed strong demand for OPEC Fund financing. In the public sector, the government has indicated interest in policy-based lending, for instance in the transport sector. In addition, potential private sector projects could include energy and financial institutions. Summarizing the prospects for future cooperation, the President said: “We are opening a new chapter in our partnership.”