Trade promotion through the German Armenian Fund

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Armenian MSMEs still have limited access to loans in local currency (core problem). This has worsened as a result of the Corona crisis and can lead to business closures and the loss of many jobs, resulting in a dramatic slowdown in poverty-reducing economic growth. The project aims to counteract this and help secure the liquidity of small and medium-sized enterprises by improving the availability of local currency loans for MSMEs. The project is complementary to the Armenian government's Measures to alleviate the consequences of Covid-19 outbreak program from March 2020. The borrower and project sponsor are the Armenian Central Bank (CBA) and its project implementation unit (PIU) German Armenian Fund (GAF). The immediate target group of the project are Armenian partner financial institutions (PFIs) that grant loans to Armenian MSMEs; the indirect target group is Armenian MSMEs. The project provides the GAF with refinancing funds for loans to MSMEs. The indirect target group thus gains access to financing offers in local currency. The module makes a contribution to the core theme of sustainable economic development, training and employment, field of action (2) private sector and financial system development.