USAID, EBRD TO PROVIDE $1.64MLN TO ARMENIA FOR SMALL AND MEDIUM BUSINESS DEVELOPMENT
ARKA News Agency, Armenia
July 16 2007
YEREVAN, July 16. /ARKA/. U.S. Agency for International Development,
USAID, and European Bank for Reconstruction and Development, EBRD, is
to allocate $1.64mln for small- and mid-scale business in Armenia under
Business Advisory Services Programme in Armenia – BAS for 2007 to 2010.
The agreement was signed Monday in Yerevan. Carolin Bryant, the
program adviser, said USAID will provide 74% and EBRD $0.5mln of the
mentioned amount.
She said that the program targets small and medium enterprises in
Armenia’s remote areas. This large program includes 235 consultative
and 10 to 15 qualification-upgrading programs.
The Program is expected to ensure 10% of the companies’ turnover –
about $50000 to 70000.
Bryant also said that the number of jobs are planned to grow 20%
and productivity will rise 10 to 15%.
Besides, it is planned to introduce up-to-market-economy administration
methods, enhance safety and reduce environment pollution.
U.S. Embassy Charge d’Affairs Rudolf Perina said after the agreement
signing ceremony that the EBRD cooperation with USAID in Armenia,
Ukraine and Kazakhstan has a long-year record. He said that EBRD
attaches great importance to private sector development and that
stable economic growth is needed for this development.
Perina said that small and medium enterprises constitute a great part
of the U.S. economy – 70%.
In his opinion, this area is very important and promising also for
Armenia and will contribute to poverty reduction and new jobs creation.
Business Advisory Services Programme in Armenia – BAS, financed by
European Union, EBRD ETC Fund and Canadian International Development
Agency (CIDA) is an initiative aimed at small and medium enterprises
development in Armenia.
The first BAS program was implemented in May 2003.
The program includes consulting services for small and medium
enterprises in marketing, accounting, reconstruction and restructuring
areas as well as ISO standards introduction and investment attraction.
Armenia joined EBRD on December 7, 1992 with $10 million. Today
investment portfolio of EBRD in Armenia on more than 40 programs
totals EUR 120mln. Financing portfolio enlarged to the record amount –
EUR 40mln on 12 projects in 2006.