Financed ProjectsInecobank SME 4

Identification Code:

OP/18/0036

Total Operation Cost:

10.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

Inecobank SME 4

Countries of Operation:

Armenia (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

4th SME Loan Facility to INECOBANK CJSC

Co-Financiers/Participants:

n/a

Guarantors/Sponsors:

n/a

Developmental and Regional Cooperation Impact:

The operation involves a loan for on-lending to small and medium sized enterprises (SMEs) that is expected to have modest but favorable economic benefits for the Armenian economy. The most relevant of these are the additional tax revenue gains from increased economic activity resulting from the financing provided. In addition, the financing will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly modest but positive. Other BSTDB countries are important trade partners for Armenia, so to the extent benefiting SMEs engage in export activities, there will be regional cooperation benefits.

Environmental Classification and Impact (summary):

According to the information received from the client, Inecobank’s Environmental and Social Management System (ESMS) ensures effective integration of environmental and social (E&S) considerations into the credit and investment appraisal and monitoring processes. This is guided by two key documents: the E&S Risk Management Policy and the E&S Risk Management Regulation, both of which apply to all credit projects financed by the bank.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org