IFC provides N4.846B to Armenia's small scale farmers

Local micro, small and medium enterprises and agribusiness in Armenia received a loan of $30million, about N4.846billion from a member of the World Bank Group, International Finance Corporation (IFC).

This was revealed to NaijaAgroNet in a press release, IFC gives the loan to Armenia's ACBA-Credit Agricole Bank in order to support the bank's lending program in rural areas through its extensive network of branches in Armenia.

NaijaAgroNet gathered that the $30m loan is the second of its kind from the World Bank Group member, as IFC once provided the bank with a loan of $20million which was used in support of about 3,000 local clients. It is also gathered that IFC with the partnership of ACBA-Credit Agricole Bank established ACBA Leasing in 2003, the first leasing company in Armenia.

The loan is also provided in order to boost job creation in the country.

Stepan Gishyan, the CEO of ACBA-Credit Agricole Bank said the new loan will further increase the banks capacity for lending to micro, small and medium enterprises including agribusiness.

"With this new loan, IFC significantly emphasizes its role as one of our largest lenders. During these challenging economic times, lending to micro and small businesses is very important for both of our institutions," affirmed Gishyan.

 The Regional Head of IFC for Caucasus, Thomas Lubeck affirmed IFC's commitment to play an important role in supporting banks in emerging markets in order to help expand their lending programmes in priority sectors like agribusiness.

"With this second loan to the leading lender to the agriculture sector in Armenia in a short time span, we aim to support development of micro and small businesses, the sector that employs a significant part of Armenian workers,” Thomas Lubeck.

A total sum of $147million has been invested in 28 projects in Armenia since Armenia's membership with IFC in 1995.

'Yinka Awosanya

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