OFID signs loan agreement with Armenian bank in support of SMEs

Vienna, Austria, June 25, 2015. The OPEC Fund for International Development (OFID) has signed a US$20m loan agreement with Armenia’s Ameriabank to be used for on-lending to small and medium size enterprises (SMEs). The agreement was signed by OFID Director-General Suleiman J Al-Herbish and Artak Hanesyan, Chairman of the Management Board and General Director of Ameriabank.

Commenting on the agreement, Mr Al-Herbish said: “As a multilateral development finance institution, OFID places micro and SME sectors at the core of activities, representing approximately one-half of OFID’s private sector and trade finance loan portfolio.

We believe that MSMEs, being a source of innovation, job creation and poverty alleviation, are the engines of growth. To give them the opportunity to start up, develop and express their potential represents a vital contribution to Armenia’s economic growth.”

Artak Hanesyan noted: “Ameriabank is honored to commence a valuable partnership with OFID. This new facility will help the bank further strengthen its position in the SME lending segment. It will also provide long-term financing opportunities for SMEs, ensuring their development and creating of new jobs, contributing to further development of the country.”

OFID and Armenia have been partners in development since 2004. Since then, US$74m in public sector loans have been approved in support of the country’s agriculture sector. In addition to the Ameriabank loan, OFID has approved US$62m in lines of credit and trade finance loans to Armenian banks to help strengthen the SME sector and support trade activities.