Small and medium entrepreneurs top-priority borrowers to Armenian banks

15.10.2013 17:24
Small and medium entrepreneurs top-priority borrowers to Armenian banks

YEREVAN, October 15. /ARKA/. Armenia’s banks consider small and medium entrepreneurs as top-priority borrowers, Tigran Jrbashyan, development director of Ameria Group, told journalists on Tuesday at the presentation of the study on small and medium entrepreneurship in Armenia.

“The last two years’ processes show progress in SME area, which has become more attractive to lenders,” he said. “I can say that after the crisis this area is the most attractive to banks.”

Small and medium entrepreneurs single out lending and money transfers as most demanded bank services.

According to ARKA News Agency, Armenian banks’ aggregate loan portfolio amounted to about AMD 340 billion.

The Union of Employers of Armenia says the optimal amount of lending to SMEs in Armenia should amount to $200 million.

The Armenian National Center for SME Development says there are some 80,000 small and mid-scale companies in Armenia. Their share in GDP is 40%.

According to the economy ministry’s figures, about AMD 98 billion has been allocated for promoting SMEs in Armenia over a period between 2007 and 2012.

The economy ministry’s fund for lending to SME earmarked about AMD 778 million this year for that purpose.

SME Investments universal credit organization intended to earmark AMD 6.6 billion this year for supporting small and mid-scale businesses.

It was also planned to allocate AMD 150 million from the government budget. ($1 – AMD 408.37). --–0--

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