The European Fund for Southeast Europe (EFSE) has provided a local currency loan to a bank in Armenia to expand access to financing for micro and small enterprises (MSEs) – contributing to a key priority of the EU4Business initiative.
The investment will allow over 3,000 new loans to be issued to Armenian entrepreneurs in their local currency.
By obtaining MSE-dedicated financing in Armenian dram, local businesses are able to fund their growth and long-term development while protected from exchange rate risks, which can weigh heavily on the viability of smaller enterprises.
The EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The EFSE funding is primarily provided to MSEs – as well as to private households in the form of home improvement loans – and is channelled to these recipients through local partner lending institutions.
