Unibank SME

completed

The IFC will provide a medium-term loan of up to US$10 million to Unibank closed joint-stock company (the “Bank”) to on-lend to eligible small and medium sized enterprises in Armenia. Unibank, established in 2001, is one of leading banks in Armenia with operations across the country. The project aims to facilitate access to finance to Armenian SMEs and, hence, support recovery of the Armenian economy from the consequences of the global financial crisis. IFC’s investment would be complemented by related advisory services that meet the Bank’s strategic needs and enhance its risk management practices and SME lending capacity. SMEs in Armenia are underserved by the banking sector due to the limited supply of long-term financing. This lack of financing is one of the reasons of the slow development of the private SME sector in the country. The proposed Project will: (i) increase the amount of funding available for SMEs, in partnership with one of Armenia’s leading banks, and (ii) foster competition among the Armenian banks for lending to SMEs which will support the sustainable development of the SME sector in Armenia.