OREANDA-NEWS. January 11, 2011. IFC, a member of the World Bank Group, is helping Armenia’s Armeconombank expand access to finance for small and medium enterprises and boost economic recovery and growth by mobilizing international funding for the bank.

IFC is providing Armeconombank with a senior loan of up to USD 5 million, and will mobilize a parallel senior loan of up to USD 5 million from the Netherlands Development Finance Company, known as FMO. The financing illustrates IFC’s catalyst role mobilizing resources and coordinating efforts of development finance institutions and the private sector to help fill financing gaps caused by the retrenchment of commercial lenders.

“The financing will enable the bank to expand its client base and provide much needed funding for small and midsize businesses from various sectors throughout Armenia,” said Armen Naljyan, CEO of Armeconombank. Armeconombank, the first Armenian bank to receive an IFC loan, in 2004, has a wide branch network throughout the country and joined IFC’s Global Trade Finance Program in 2006.

“Small and medium enterprises play an important role in Armenia’s economy in terms of contributing to total production and creating jobs,” said Thomas Lubeck, IFC Regional Head for the Caucasus. “With this investment, we will help improve competitiveness of these companies and also invite other development finance institutions and the private sector to provide funds for the Armenian market.”

Since Armenia became a member of IFC in 1995, IFC has invested USD 87 million in 18 projects across industries, including financial markets, general manufacturing, and mining. IFC Advisory Services provides advice through projects focusing on the financial sector, sustainable energy, and investment climate regulatory simplification.