IFC helps expand microfinance lending in Armenia to support employment and reduce poverty
IFC, a member of the World Bank Group, is helping increase the lending capacity of a top microfinance institution in Armenia, to help it finance micro, small and medium enterprises (MSMEs) so they can expand, create jobs, and reduce poverty.
IFC will provide FINCA UCO CJSC with a loan of $4 million in local currency, which will be lent to MSMEs and entrepreneurs throughout the country. Increasing access to finance for small businesses gives a significant boost to economic growth. IFC’s local currency funding will also help FINCA reduce foreign exchange risks.
“FINCA aims to bring more opportunities to disenfranchised communities in the region by offering them financial services, in an effort to empower them to take charge of their lives,” said Yervand Barseghyan, CEO, FINCA UCO CJSC.
FINCA UCO CJSC is a subsidiary of FINCA Microfinance Holding Company, owned and managed by FINCA International, one of the world’s largest microfinance organizations. IFC is an anchor investor in FINCA Microfinance Holding Company.
“Microfinance provides financial services to the lowest income entrepreneurs who lack access to finance,” said Thomas Lubeck, IFC Regional Manager for the South Caucasus. “Through our cooperation with FINCA, we support the expansion of financial services to entrepreneurs, helping their businesses to grow and employ more people from local communities, especially in the regions.”
Armenia became a member and a shareholder of IFC in 1995. Since then, IFC has invested $244 million in 40 projects across a range of sectors, including financial markets, manufacturing, and mining. IFC advisory services provide advice on the financial sector, sustainable energy, business regulations, and food safety.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org
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