MENA Newswire News Desk: The OPEC Fund for International Development (OPEC Fund) has extended a US$10 million loan to Evocabank CJSC to enhance financial access for micro, small, and medium-sized enterprises (MSMEs) in Armenia. The loan will primarily focus on supporting women-led businesses and promoting climate action through energy efficiency and renewable energy projects.
OPEC Fund President Abdulhamid Alkhalifa emphasized the significance of this partnership, stating, “Collaborating with Evocabank enables us to address critical development priorities, including expanding financial access to MSMEs, particularly underserved groups, while bolstering Armenia’s initiatives to combat climate change.” He noted that the initiative aligns with the OPEC Fund’s broader mission to foster sustainable economic growth and inclusivity in the region.
In Armenia, MSMEs make up the majority of businesses and contribute approximately 70 percent of total employment. However, many of these enterprises, especially those led by women, encounter significant barriers when attempting to secure financing. It is estimated that nearly three-quarters of MSMEs either lack full access to necessary funds or face severe credit restrictions.
Through this loan, the OPEC Fund aims to alleviate those constraints, providing much-needed financial support to businesses driving local economic growth. A particular focus will be placed on promoting climate-friendly projects, including those that advance energy efficiency and renewable energy, key areas where Armenia seeks improvement.
Evocabank, a prominent Armenian financial institution, is well-positioned to channel these funds effectively. With a reputation for supporting small and medium-sized enterprises, Evocabank is expected to leverage this partnership to address the financial needs of businesses that are crucial to Armenia’s economy, especially in rural areas where access to credit remains scarce. This partnership reflects the OPEC Fund’s ongoing commitment to empowering MSMEs and supporting global climate action, aligning with Armenia’s national objectives for sustainable development.
By targeting women-led businesses and environmentally sustainable projects, the loan aims to foster both economic and social resilience in the region. The OPEC Fund has a longstanding history of partnering with financial institutions across the globe to promote economic development, and this agreement with Evocabank marks a key step in supporting Armenia’s business community and its environmental initiatives.