The Armenian bank Araratbank and Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO) recently agreed to expand their risk-sharing facility by USD 10 million. FMO’s portion of the commitment is from its Nasira Fund, which guarantees lending to micro-, small and medium-sized enterprises (MSMEs) whose owners fall into one or more of the following categories: youth, women, migrants and those highly affected by the COVID-19 pandemic. Araratbank plans to leverage the guarantee to focus on MSMEs owned by women and youth as well as those active in the agricultural sector. Araratbank and FMO have made similar agreements since 2021, totaling USD 19 million, exclusive of this agreement.
Established in 1991, Araratbank offers securities, deposits, loans and other products to commercial customers from 51 branches in Armenia. As of December 2021, it reported total assets of AMD 268 billion (USD 655 million).
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private investors. The institution works toward the UN Sustainable Development Goals by funding capacity development and by placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. As of December 2022, FMO reported a committed portfolio of EUR 13.2 billion (USD 14.3 billion).
By Vaughn Rajah, Research Associate
Sources and Additional Resources
FMO transactions, April 2023
https://www.fmo.nl/news-detail/66634ea9-ad52-4821-9364-137a7edd9233/monthly-transaction-overview-april-2023
Araratbank homepage
https://www.araratbank.am
FMO homepage
https://www.fmo.nl
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