OFID signs loan agreement in support of SMEs in Armenia

July 14, 2014, Vienna, Austria. The OPEC Fund for International Development (OFID) and Araratbank of Armenia have signed a US$10 million financing agreement that will support small- and medium-sized enterprises (SMEs) in Armenia. Various development impacts are expected to arise from the new funding, such as helping create employment opportunities and increasing access to foreign currency financing, as well as extending tenors of credit facilities to a number of key economic sectors within SMEs in Armenia, such as agriculture, services and manufacturing. The agreement was signed by OFID Director-General Mr Suleiman J Al-Herbish and Mr Ashot Osipyan, Chairman of the Governing Board of Araratbank.

OFID partnered with the bank owing to its strong distribution network within the country, therefore enabling financing to reach SMEs outside the capital Yerevan, where access to such funding is limited. Araratbank is also well known in the market as a major player in funding SMEs in the country.

OFID has shown its continuous commitment to supporting the SME sector in Armenia, having previously provided financing totaling US$42 million to four commercial banks in the country under its private sector and trade finance windows. In addition, OFID has supported four public sector projects (US$49m) aimed at boosting Armenia’s agriculture sector.