Financed ProjectsDICA SME II

Identification Code:

OP/25/0009

Total Operation Cost:

7.000.000

Maturity:

72 months

Operation Status:

Description and Purpose of the Operation:

DICA SME II

Countries of Operation:

Armenia (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

The 2nd Loan for SME Financing to Development and Investments Corporation of Armenia (DICA)

Co-Financiers/Participants:

n/a

Guarantors/Sponsors:

n/a

Developmental and Regional Cooperation Impact:

The operation involves a USD 7 million loan and is expected to have modest but favorable economic benefits for the Armenian economy, the most relevant being additional tax revenue gains from increased economic activity under the additional amount provided. Also, the additional amount provided will help further enhance benefits such as increases in employment, an increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly expected to be modest. Other BSTDB countries are important trade partners for Armenia, so to the extent that SMEs benefiting from financing from the operation engage in export activities, there will be regional cooperation benefits.

Environmental Classification and Impact (summary):

DICA has a functioning E&S management system that allows to deal efficiently with risks and impacts that potentially may arise from its financing activities. The due diligence concludes that the Borrower meets the E&S requirements of BSTDB towards financial intermediaries.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org