On November 14, 2017 at Armenia Marriott hotel Yerevan the signing ceremony between FINCA UCO and Asian Development Bank took place. By the collaboration ADB is providing $6 million in loans and $200,000 in technical assistance grants for financial inclusion in Armenia.
ADB’s financing package will allow FINCA to provide long-term funds to clients denominated in both US dollars and Armenian dram, which will support micro, small and medium-sized enterprises (MSME) and farmers by helping them to raise income levels and employment.
The main goal of the initiative aims at increasing the access to financial services for micro and small businesses, which will help them to develop their businesses, thus create new jobs, and finally promote shared prosperity. This loan will allow FINCA to expand lending to low-income entrepreneurs, especially in rural areas through its extensive network of branches across the country. The outcome will be the huge contribution to the increase of the accessibility of financial services in these areas and to the overall financial inclusion. This goal perfectly coincides with the mission of FINCA, which is to alleviate poverty through lasting solutions that help people build assets, create jobs and raise their standards of living.
“Armenia’s economic prospects depend on a thriving private sector that can provide financial solutions for businesses and individuals to expand their economic opportunities,” said Christopher Thieme, Deputy Director General in ADB’s Private Sector Operations Department. “ADB is proud to be working with FINCA UCO to expand banking services for small businesses and farming households and improve delivery of financial services to underserved regions.”
“FINCA UCO and Asian Development Bank share the same values of poverty reduction and the improvement of the quality of life in the country. Thus, partnership with ADB will become a great opportunity for FINCA to fulfill the ambition of providing the low-income entrepreneurs with high-quality financial services. The main part of the funds will be targeted at extending the portfolio of agrobusiness loans.” said FINCA UCO General Director Hrachya Tokhmakhyan.
ADB will also provide technical assistance to FINCA Armenia to support financial inclusion. For example, ADB will support the development of a credit scoring system and help the institution become certified under the global “Smart” campaign, which aims to embed client protection practices in financial institutions.