The European Bank for Reconstruction and Development (EBRD) and ARMSWISSBANK have signed two new loan agreements totalling USD 8 million under the SME Competitiveness Programme in Eastern Partnership that is supported by the European Union (EU) (“SME Competitiveness Programme”) and Green Economy Financing Facility in Armenia Phase ll Energy Efficiency Program (“GEFF in Armenia”) supported by the Green Climate Fund (GCF)..
Within the scope of the SME Competitiveness Programme, the Bank will offer its customers business loans on competitive terms with a maturity of up to 5 years. SME Competitiveness Programme aims to raise the standards of local companies, modernise production, improve working conditions, and promote competitiveness in local and international markets. At least 70% of any loan must be directed to investments in green technologies. The loans will also have an incentives component (grants) and technical assistance supported by grant resources from the European Union.
Within the scope of the second phase of GEFF in Armenia, the Bank will offer loans to the corporate clients for up to 5 years maturity and with preferential terms. Funding will be available for investments in green technologies, particularly in climate adaptation and mitigation technologies, i.e. thermal insulation, solar PV power plants, geothermal heat pumps, water-efficient irrigation systems will be funded. Up to 1,600 pre-approved high-performance technologies can be accessed by the Bank’s clients through Green Technology Selector (GTS). The Facility also includes a comprehensive package of technical assistance to local businesses to help identify and seize opportunities for green investments. The GCF will support the Facility by providing incentive grants to eligible green projects. Financing energy efficiency projects have always been one of the Bank’s strategic directions. Before participating in these programs, the Bank, in cooperation with EBRD and other international financial partners, funded more than 100 “green” technology projects. During the first phase of the GEFF in Armenia, ARMSWISSBANK has contributed to producing 5.5 GWh/year clean energy and GHG reduction by 2,747 tonnes/year disbursing 2.5 million EUR, equalling funds.
In addition, the Bank and EBRD also effectively cooperate in the field of Trade Finance in the framework of the Trade Facilitation Programme (TFP) and based on the results of the previous year’s activity, the Bank, during EBRD’s 2021 annual meeting, was awarded the “Most Active Issuing Bank in Armenia” for the third year in a row. Considering the activity and efficiency of the cooperation, EBRD increased the Trade Finance limit of the Bank by USD 6.5 million, totalling it to USD 28.5 million, which currently is one of the most significant limits in the Armenian banking system.
The Bank has been cooperating with the EBRD since 2010. The cooperation is actively developed in the areas of SME Lending, Trade Finance, Green Finance and Global General Repo Agreement (GMRA), which regulates the process of concluding repo transactions with securities in the international financial markets, adopted by the International Association (ICMA – International Capital Markets Association). In July 2014, the EBRD granted the Bank the status of “Approving Bank”.
ARMSWISSBANK operates in corporate and investment banking sectors as a dynamically developing financial institution, offering traditional and innovative financial solutions used internationally. The Bank cooperates with several international financial organisations such as EBRD, ADB, KFW, EIB, FCI, Responsibility, etc.
EBRD is a leading institutional investor in Armenia. The Financial Institution has invested more than EUR 1.56 billion in 191 projects in Armenia in the financial, corporate, infrastructure and energy sectors, with 91% of investments going to the private sector.
https://amcham.am/wp-content/uploads/2021/09/awb.jpg10721500Armanhttps://amcham.am/wp-content/uploads/2018/01/amcham-shrinked.pngArman2021-09-08 22:26:142021-09-08 22:28:17TWO NEW LOAN AGREEMENTS ARE SIGNED BETWEEN ARMSWISSBANK AND EBRD