New SME funding for green transition in ArmeniaThursday, 09 September 2021 11:28
New SME funding for green transition in Armenia N.Frolova Thu, 09/09/2021 - 13:28
Armenia’s private sector will benefit from new resources for green financing thanks to an US$ 8 million financial package put together by the European Bank for Reconstruction and Development (EBRD) in cooperation with the European Union and the Green Climate Fund (GCF). The funds will promote the private sector’s transition to more sustainable, low-carbon and climate-resilient practices.
The package is being provided to ArmswissBank under the EBRD’s Green Economy Financing Facility (GEFF) programme and the EU4Business-EBRD credit line. It will support on-lending to small and medium-sized enterprises (SMEs) for investments in climate change mitigation and adaptation as well as for upgrading technologies and services to EU standards.
This is the second project to be signed in Armenia under the EU4Business-EBRD credit line. It helps local companies improve their standards, upgrade production, improve employee working conditions and boost competitiveness on the local and international markets. At least 70 per cent of each loan will finance investments in green technologies. Borrowers are eligible for incentive grants and technical advice, both funded by the EU under its EU4Business initiative.
“The EU is committed to supporting SMEs as key for green growth, jobs and building back better the Armenian economy,” said Ambassador Andrea Wiktorin, Head of Delegation of the European Union to Armenia.
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