EUROPEAN BANK TO INVEST 180 MILLION EUROS IN ROA

2009/06/10 | 10:42

Finances

Dow Jones reports that on Tuesday the European Bank for Reconstruction
and Development said it will invest EUR 180 million in Armenia over
the next two years.

The development bank said that although the country isn’t greatly
exposed to the global financial crisis, it will suffer from a drop in
remittances from Armenians working outside the country, and declining
exports.

The EBRD said it will provide loans to Armenian banks that will be
used to finance companies operating in the country, and will make
"selective" equity investments in its leading banks.

In its review of its strategy for the country, the EBRD said reforms
have slowed in recent years and a number of issues need to be
addressed, including "promoting competition and limiting monopolies,
tackling corruption (and) strengthening the financial sector."

It is the largest single investor in Armenia, having committed EUR240
million to 64 projects in the country.