OREANDA-NEWS. Eurasian Development Bank (EDB) signed today a loan agreement with Ardshininvestbank, according to which this Armenian bank will receive USD 10 million for five years to finance small and medium-sized enterprises (SMEs) in Armenia. The agreement was signed by Dmitry Krasilnikov, Deputy Chairman of the Management Board at EDB, and Mher Grigoryan, Chairman of the Management Board at Ardshininvestbank.

Ardshininvestbank will select sub-borrowers on its own from SMEs who meet EDB criteria and provide them targeted sub-loans for the advancement of their businesses.

The project will help to create and develop favourable conditions for the sustainable advancement of SMEs, the enhancement of competition, and the improvement of SME competitiveness in domestic and foreign markets. It is being implemented in the framework of EDB-run Programme for the Support and Development of SMEs by Providing Targeted Loan Facilities to Financial Institutions.

"The development of SMEs is critical for boosting economy as a whole and we are confident that this project will contribute to this," says Dmitry Krasilnikov. "In addition, in accordance with the Bank's strategy for 2013-2014, the provision of finance to the banking sector for its sub-lending to SMEs is among the Bank's investment priorities in Armenia."

"I appreciate that the loan provided by EDB will foster the development of the Armenian private sector by expanding access for SMEs to long-term finance. Today EDB unites its efforts with one of the largest financial institutions, which has strong positions in the domestic market and works with small, micro, and medium-sized businesses, among other clients. This agreement is a good start for cooperation between EDB and Ardshininvestbank, which will surely strengthen and expand in the future," says Mher Grigoryan, Chairman of the Management Board at Ardshininvestbank.