IFC HELPS INCREASE MICROFINANCE ACCESS FOR SMALL BUSINESSES IN ARMENIA
BusinessGhana
27th January 2010
IFC, a member of the World Bank Group, said on Monday that it is
helping microfinance access for small businesses in Armenia’s rural
areas, promoting growth and sustainable development.
In cooperation with IFC, Inecobank is expected to strengthen its
capacity to reach Armenia’s people, most of whom have limited access
to microfinance, according to a statement released
by the IFC. IFC has introduced an innovative form of support,
performance- based grants structured in
tranches, whereby clients are rewarded for achieving development
targets.
Through a gradual, step-by-step process, IFC will release up to
700,000 dollars of performance-based grants for the bank, making more
than 71,000 new micro loans to individuals and small entrepreneurs,
mostly in rural areas of Armenia.
"With the onset of the financial crisis, microfinance proved to be
one of the most sustainable products for the bank and one of its
strategic sector priorities," said Avetis Baloyan,
Inecobank’s CEO.
IFC’s expanded cooperation with Inecobank is part IFC’s regional
crises response program. It also is in line with IFC’s strategy for
Armenia, which entails supporting the most vulnerable segments of the
population by helping microfinance institutions, according to the IFC.