Vice President of the European Bank for Reconstruction and Development (EBRD) Pierre Heilbronn paid an official visit to Armenia from 6-7 February 2020, meeting with government representatives and business partners. Below is a summary of his visit.
European Bank for Reconstruction and Development (EBRD) Vice President Pierre Heilbronn met with Armenian Minister of Economy Tigran Khachatryan to discuss the joint efforts in developing the “green economy” concept, as well as the need for increased productivity and behavioural changes in the agriculture sector.
In his speech, the Minister noted, “EBRD involvement is very important in Armenian economic life. We attach great importance to the fact that the bank works directly with private sector enterprises. We cannot expect high-quality financial flows in this sector without a high level of corporate governance that corresponds to international standards”.
In response, Mr Heilbronn stated that “Armenia is doing significant work to improve the business environment. The country may expect increased interest from the international audience and investors after the annual meeting of the EBRD’s 69 member states to be held in the spring of 2021.”
Additionally, the head of the EBRD’s Yerevan Office, Dmitri Gvindadze, announced that “2019 was one of the most successful ones in terms of cooperation with Armenia. The EBRD invested €118 million in 15 projects in Armenia, and the Bank continued to support the private sector through direct lending and the provision of credit lines to EBRD partner financial institutions in Armenia. One of the key areas of our activity in Armenia in 2019 has been the financial sector, with €74 million in support of small businesses, green lending and women in business. Another important project is the street lighting and restoration programme in the second largest city of Armenia, Gyumri. One of the main areas of cooperation is the energy sector: we are also continuing our cooperation with Armenian Electricity Networks CJSC, which is implementing a multi-year project aimed at modernising the distribution network in Armenia. In addition to providing financial support, the EBRD is conducting a policy dialogue with the Central Bank of Armenia on the development of the capital market. In 2020, our work will be focused on the financial sector. We will expand the implementation of projects in the energy sector, assisting the government in developing renewable energy infrastructures.”
Beyond its activities in Armenia, in 2019 the EBRD delivered a record level of impact to its regions, honouring a pledge to raise both the quality and quantity of its investments in 38 economies across three continents. The Bank financed an unprecedented 452 individual projects, compared with 395 a year earlier. Financing exceeded €10 billion for the first time in the Bank’s history, rising to €10.1 billion from €9.5 billion. The EBRD’s green economy financing activities hit a record €4.6 billion or 46 per cent of total business volume in 2019, underscoring the EBRD’s very strong support for the global climate agenda.
The news article is based on data from various media releases at banks.am and ebrd.com.
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