The European Fund for Southeast Europe (EFSE) has partnered with Inecobank in Armenia by providing US$10 million in financing to support micro, small and medium enterprises (MSMEs) operating in critical sectors such as agriculture, manufacturing, and transportation, The financing is expected to enable around 1,200 loans to MSMEs and to support more than 4,000 jobs.
The investment is an essential part of EFSE’s overall programme to support MSMEs affected by the economic, social, and security challenges triggered by the Russian invasion of Ukraine and the related sanctions.
Rising inflation and surging energy prices are raising MSMEs operational costs and depleting their liquidity buffers. The investment aims to give MSMEs in vital sectors continued access to finance to secure the needed inputs, services, inventories, and reserves, and to help them mitigate supply-chain disruptions.
Working with the EU4Business initiative, EFSE aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households.
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Press release