Armenian SMEs will strengthen their resilience with BSTDB funds
The loan will allow DICA to provide much-needed financing for SMEs for capital expenditures and working capital requirements, thus ensuring the continuity of their activities and mitigating the impact of Covid-19 on the economy Armenian.
The BSTDB loan is the very first direct financing that the Armenia Development and Investment Corporation receives from an international financial institution.
“We are happy to continue our support for the development of the SME sector in Armenia, now in partnership with DICA, an Armenian state entity. Providing small businesses with the tools they need to become more competitive and grow is vital for the sustainable development of the Armenian economy. Access to finance is crucial for SMEs to maintain their businesses and jobs in the midst of the pandemic, ”said Dmitry Pankin, President of BSTDB.
“We highly appreciate DICA’s first cooperation with BSTDB and hope that it will be continued. This attraction of BSTDB will be allocated to small and medium-sized enterprises, ensuring the growth of enterprises, meeting the capital expenditure and working capital requirements and continuity under the conditions of the epidemic period, mitigating the impact of its negative consequences on the Armenian economy. Financing the Armenian SME sector through loans from international financial organizations is always the focus of DICA’s attention, ”said Arthur Badalyan, executive director of the Armenia Development and Investment Corporation.
Currently, the total amount of BSTDB support for the development of the SME sector in Armenia through local financial institutions exceeds EUR 100 million.
The Armenia Development and Investment Corporation (DICA), was founded in 2009 as a universal credit body, used as a vehicle to finance Armenian SMEs and some investment projects and facilitate the development of the Armenian economy. 100% of DICA shares are held by the Government of the Republic of Armenia through the Investment Support Center (ISC – 50.9%) and the Ministry of Finance (49.1%). With the aim of developing and strengthening the public-private partnership, the Company has assumed the role of privileged intermediary in the financial market of AR, financing the real sector of the economy. DICA is one of the participants in the financial system of the Republic of Armenia, controlled by the Central Bank of the Republic of Armenia. For more information on DICA, visit www.dica.am.
Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine. The headquarters of the BSTDB are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, lines of credit, equity and guarantees for projects and commercial finance in the public and private sectors of its member countries. The authorized capital of the Bank is 3.45 billion euros. BSTDB has a long-term rating of “A-” by Standard and Poor’s, “A2” by Moody’s and “A +” by the Russian rating agency ACRA. For more information on BSTDB, visit www.bstdb.org.