USAID AND EBRD SIGN AGREEMENT ON ASSISTANCE AIMED AT SMB DEVELOPMENT IN ARMENIA

Noyan Tapan
Jul 17 2007

YEREVAN, JULY 17, NOYAN TAPAN. An agreement on assistance provided
to EBRD Business Advisory Services Program for Armenia was signed on
July 16 between the USAID and the European Bank for Reconstruction
and Development (EBRD).

On the part of the USAID the document was signed by the U.S. Charge
d’Affaires, Rudolf Perina, and on the part of the EBRD by the bank’s
Armenian office Director, Alexander Babayan.

Within the framework of the agreement, the USAID will finance the
EBRD Business Advisory Services Program for Armenia, through a grant
of 1.64m USD, and another 500 thousand USD will be provided by the
EBRD’s Early Transition Countries Fund (EBRD ETC Fund).

It is envisaged that within the framework of the agreement aimed
at development of micro and small business in Armenian regions, 235
advisory programs and 10-15 retraining courses will be held. Thanks
to them, the annual turnover of each of the beneficiary economic
entities will increase by 10% (by drams equivalent to 50-70 thousand
USD), the number of jobs by 20% (by 5-10 jobs), the productivity by
10-15%. Besides, those implementing the program hope that management
methods corresponding to market economy will be introduced at the
beneficiary enterprises, their management will pay more attention
to employees’ health and work safety, as well as to reduction of
environment pollution.

R. Perina said that like in other countries, in Armenia also the small
and medium-sized business sphere plays a considerable role in the issue
of ensuring stable economic growth and poverty reduction. In his words,
the country’s SMB sphere is faced by problems of lack of funds and
acquiring skills of advancing on the market. It was mentioned that the
EBRD Business Advisory Services program, which has been implemented in
Armenia since 2003, has already provided advisory services of above
mentioned issues’ solution to 365 enterprises. It was also mentioned
that USAID and EBRD have a long experience of successful cooperation.