OREANDA-NEWS. IFC, a member of the World Bank Group, and the Black Sea Trade and Development Bank (BSTDB) are helping Unibank expand access to finance for small and medium enterprises (SMEs) in Armenia, to help them grow and create jobs.

IFC and BSTDB will each provide a loan of USD 5 million to help Unibank address the long-term financing needs of its SME clients, which often struggle to secure the funding they need to develop. IFC, through its Bank Advisory Program in Europe and Central Asia, will also support Unibank with advisory services aimed at improving risk management and SME credit processes.

“The financial resources from international financial institutions, such as IFC and BSTDB, support our strategy to become a loyal partner to our SME customers by offering them a wide range of banking services,” said Vardan Atayan, Chairman of the Executive Board of Unibank. “Thanks to this cooperation, Unibank will get an opportunity to expand its lending program.”

Andrey Kondakov, BSTDB President said: “Supporting small and medium businesses is a key condition for economic growth. This loan is an example of the cooperation that international financial institutions must develop to foster development and employment”.

Supporting the SME sector is one of IFC's and BSDTB's priorities in Armenia, and in the wider region.

“Limited access to finance is a key constraint for the private sector, which is critical for creating jobs and the economic growth of Armenia,” said Thomas Lubeck, IFC Regional Manager for the South Caucasus. “Our cooperation with Unibank will enable the bank to increase financial resources for businesses in a variety of sectors, leading to economic growth.”

The IFC Bank Advisory Program in Europe and Central Asia is supported by funds from the Development Bank of Austria (OeEB).