Acba bank to Allocate $50 Million for MSME Development
As a result of a new collaboration between Acba bank and the International Finance Corporation (IFC), Acba bank will allocate $50 million to finance and develop micro, small, and medium enterprises (MSMEs) in Armenia.
Through this new partnership, IFC will share the credit return risk for loans provided by Acba bank, covering up to 50% of the $50 million portfolio. This collaboration will allow Acba bank to further expand its financing for MSMEs across Armenia.
“This new partnership with IFC is a significant project aimed at supporting micro, small, and medium enterprises. The program is about sharing risks – IFC’s support allows us to be bolder and more active in financing MSMEs. I believe we can rapidly allocate these funds,” said Hakob Andreasyan, CEO of Acba bank.
“This risk-sharing partnership with Acba bank is vital for Armenia as it promotes the sustainable and inclusive development of the country. Through this project, we aim to support MSME financing in Armenia, particularly by addressing challenges they face in attracting financial resources. It is crucial that women-owned enterprises also benefit from this partnership, as financing barriers are especially prominent among women-owned SMEs, rural areas, and agribusinesses,” noted Marcelo Castellanos, IFC’s Senior Regional Manager for the Financial Institutions Group in Europe.
The bank is supervised by the Central Bank of Armenia.