EU and EFSE commit €7 million for local currency lending in Armenia

On 4 May,the European Union and the European Fund for Southeast Europe (EFSE) signed a new agreement, under which €7 million has been earmarked for micro and small enterprise (MSE) and household loans in Armenia.

The capital will be channelled through local financial institutions that meet the financing needs of these clients. The funding will be provided in the equivalent value of Armenian dram.

“When people can take out a loan in the same currency in which they make their income, they are safeguarded from ups and downs in the exchange rate that can threaten their ability to do long-term financial planning,” said EFSE Board Chairperson Klaus Müller. “Thanks to generous contributions from the EU, EFSE has an internal mechanism that allows us to expand the practice of local currency lending to our partners across the regions in which we operate.”

The money is part of a broader investment package from the EU into EFSE to fuel the partners’ mission to invest in the prosperity of the six countries of the EU Eastern Neighbourhood region through the provision of responsible financing to entrepreneurs and households.

Established in 2005, EFSE aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of MSEs as well as improved living conditions for private households.

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