EFSE and ARARATBANK advance development finance to local business in Armenia
The European Fund for Southeast Europe (EFSE), an impact investment fund advised by Finance in Motion, has loaned USD 15 million to partner ARARATBANK in order to bolster financing for micro and small enterprises (MSEs) in Armenia. The investment will enable the bank to expand its engagement with entrepreneurs, thus contributing to the sustainable development of local businesses.
ARARATBANK is a strong player in the Armenian banking sector, with a strategic focus on providing financing to small and medium-sized enterprises. An EFSE partner since 2010, the bank has successfully leveraged EFSE funding to facilitate thousands of sub-loans with long-term maturities to support business and economic development in Armenia.
EFSE Board Chairman Christoph Tiskens said: “We have enjoyed a successful cooperation with ARARATBANK for many years, and are proud to be continuing that partnership to enhance development financing options for the hardworking entrepreneurs of Armenia.”
Maja Gizdic, Director at EFSE advisor Finance in Motion, added: “EFSE believes in promoting economic development through responsible finance. By expanding the capacity of the local financial sector to serve MSEs, we are investing in the success of Armenian businesses on both an individual and systemic level.”
Chairman of Executive Board of ARARATBANK Ashot Osipyan also highlighted the cooperation and stated: "I am very happy that by signing this contract, we again reaffirm our strong relationship of mutual trust with our strategic partner. We value this cooperation not only for borrowing of funds, but also for a wider scope of actions, particularly for the introduction of new banking technologies, development of management culture and almost all banking operations, the ultimate beneficiaries of which are the customers of ARARATBANK. "