OPEC Fund extends US million loan to Evocabank to support local businesses and promote climate action in Armenia
September 23, 2024: The OPEC Fund for International Development (the OPEC Fund) has signed a US million loan agreement with Evocabank CJSC to support micro, small and medium-sized enterprises (MSMEs) in Armenia. Lending will focus on women-led businesses as well as energy efficiency and renewable energy projects to promote climate action.
OPEC Fund President Abdulhamid Alkhalifa said: "Partnering with Evocabank allows us to address two critical development priorities: increasing financial access for MSMEs, especially those that are underserved, and supporting Armenia’s efforts to tackle climate change. This partnership reflects our broader commitment to promoting sustainable economic development and inclusive growth in Armenia.”
The OPEC Fund loan will provide financing to MSMEs, which represent nearly all businesses in Armenia and provide around 70 percent of all jobs. Despite their critical role in the economy, many MSMEs, especially women-lead businesses, often face credit constraints, with nearly three-quarters either partially or fully unable to access necessary financing.
Karen Yeghiazaryan, Chairman of Evocabank’s Management Board said: “We are excited to announce our partnership with the OPEC Fund. With a US million facility, Evocabank is poised to make a meaningful impact on the growth of MSMEs in Armenia. This funding provides a valuable opportunity to further our mission of promoting business development and driving economic progress in the region. We look forward to offering tailored and accessible financing solutions that will empower MSMEs to overcome challenges, foster innovation, and scale their operations to new heights.”
The OPEC Fund has been supporting Armenia since 2004 and to date has committed around US million in public and private sector financing, supporting financial institutions, SMEs and the agriculture and energy sectors.
The OPEC Fund for International Development has entered into a $10 million loan agreement with Evocabank CJSC aimed at bolstering micro, small, and medium-sized enterprises (MSMEs) in Armenia. The lending initiative will primarily focus on women-led businesses and projects that enhance energy efficiency and renewable energy, promoting climate action in the region.
OPEC Fund President Abdulhamid Alkhalifa highlighted the importance of this partnership, stating, “Partnering with Evocabank allows us to address two critical development priorities: increasing financial access for MSMEs, especially those that are underserved, and supporting Armenia’s efforts to tackle climate change. This partnership reflects our broader commitment to promoting sustainable economic development and inclusive growth in Armenia.”
MSMEs play a vital role in Armenia’s economy, accounting for nearly all businesses and providing around 70 percent of jobs. However, many of these enterprises, particularly women-led businesses, face significant credit constraints, with approximately three-quarters unable to access the financing they need.
Karen Yeghiazaryan, Chairman of Evocabank’s Management Board, expressed enthusiasm about the collaboration, stating, “With a $10 million facility, Evocabank is poised to make a meaningful impact on the growth of MSMEs in Armenia. This funding provides a valuable opportunity to further our mission of promoting business development and driving economic progress in the region. We look forward to offering tailored and accessible financing solutions that will empower MSMEs to overcome challenges, foster innovation, and scale their operations to new heights.”
The OPEC Fund has been actively supporting Armenia since 2004, committing approximately $300 million in public and private sector financing to assist financial institutions, SMEs, and the agriculture and energy sectors.
