BSTDB and Izmirlian Foundation Launch a Joint Finance Facility to Support SMEs in Armenia
Press Release | 06-Feb-2003
BSTDB in cooperation with the Izmirlian Foundation (IF) committed USD 2 million each for direct medium and long-term financing for Armenian small and medium-sized enterprises (SMEs). The BSTDB - IF Joint Finance Facility is established in Yerevan to administer loans to local SMEs.
The BSTDB - IF Joint Finance Facility will provide loans in US Dollars or in Euro for capital expenditure and working capital requirements of the borrower. Loan amounts range from USD 125,000 up to USD 500,000. The maximum term of the loans is 5 years, with the maximum grace period of 6 months. Interest rates will range between 10% and 12% per annum.
The project constitutes the BSTDB first investment in Armenia and will contribute to the development of SME sector, which is a prime operational focus of BSTDB in Armenia. The loan facility aims to support SMEs in their effort to improve quality of work and production capacity that would create greater business opportunities and boost economic initiative in such important sectors as manufacturing, services, transportation and food processing. Offering technical assistance of high expertise and sharing best operational practice will also have sound impact on investment climate in Armenia.
The Izmirlian Foundation is an investment and philanthropic organization created in 1994. The Izmirlian Foundation has contributed regularly and generously to various projects in Armenia in such fields as education and health. In 1999, The Izmirlian Foundation jointly with Eurasia Foundation of Washington D.C., launched a loan program for small and medium sized business enterprises in Armenia (The Izmirlian Eurasia Small Business Loan Program). The Izmirlian-BSTDB collaboration is an extension of the Foundation's efforts to improve the business atmosphere and foster the creation of employment in Armenia.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. With an authorized capital of SDR 1 billion (approx. USD 1,325 billion), the Bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects supporting both public and private enterprises in its member countries. Since the commencement of operations in 1999, BSTDB's Board of Directors has approved operations totaling over USD 430 million.