IFC has launched a program in Armenia aimed at improving financial accessibility climate-related projects

The International Finance Corporation (IFC) has launched a program in Armenia aimed at improving financial accessibility and supporting climate-related projects

The program focuses on supporting small businesses, women entrepreneurs, as well as agricultural and climate projects.

Currently, three Armenian banks are participating in the program: Acba Bank, Converse Bank, and Evocabank. The first two banks are involved in implementing risk-sharing mechanisms for businesses. Evocabank is expanding its cooperation with IFC to finance women-owned small businesses and startups focused on climate issues.

Acba Bank has received $25 million from IFC, Evocabank has received $10 million, and Converse Bank has received $5 million. All funds will be directed toward refinancing loans for micro and small entrepreneurs.

What does this mean, and what prospects does it open for Armenia?

Armenian banks collaborating with IFC will be able to receive support for launching startups. This could positively impact the development of micro and small businesses in the country, particularly supporting women entrepreneurs. The participating banks will be able to offer small business owners more opportunities to start their ventures.

Small businesses are very popular in Armenia, and in remote regions of the country, they are often the only source of income. Despite the large number of small entrepreneurs, keeping such businesses afloat is very challenging due to the lack of government support and high taxes. Additionally, many women in Armenia are starting micro-businesses focused on local agricultural products.

We believe that the joint initiative between IFC and Armenian banks opens up great prospects for entrepreneurs, especially women, to sustain and grow their businesses in the long term. This program, by expanding small business financing and reducing risks, could attract more entrepreneurs, which will positively affect the development of the business environment in Armenia.

Regina Melikyan