Converse Bank to improve MSME competitiveness within   EU4Business-EBRD program

ArmInfo.  Converse Bank has presented a new loan product aimed to improve the competitiveness of MSMEs in Armenia within the EU4Business-EBRD program "Increasing SME Competitiveness and Inclusion Programme in Eastern Partnership" (EaP SMECI), as noted in the message from Converse Bank, which indicates that the goal of the program is to help improve the competitiveness of SMEs at the local and regional levels through the use of "green" technologies.

The loan/leasing is aimed at: acquisition of fixed assets,  agricultural machinery and equipment, vehicles; financing  the  service sector segment,  particularly those whose  activities  are  related to export; execution of construction works (except for  apartment buildings);  and financing of auxiliary costs  (construction, transportation and installation) up to 20% of the  corresponding technological cost.

The financing amount ranges from 2 million to 1.3 billion drams,   with a repayment period of 12-84 months. The nominal interest rate  for the first two years is 13-16% per annum and a minimum prepayment  of 10% is required for leasing. 

Financial incentives are provided: a cashback of 10-15% for all  borrowers; an additional benefit of up to 20% for companies  established by persons who moved to Armenia between 27.09.2020 and  23.09.2023 and registered according to  government regulations; and  extra benefit of up to 15% for companies that have hired displaced  persons.

"Within the framework of this product, Converse Bank will finance  micro, small and medium enterprises (MSMEs), supporting their  sustainable investments in the latest technologies, as well as  compliance with the best standards in the field of product quality,  labor protection, safety and environmental protection.  Particular  attention is paid to the acquisition of EU-certified equipment, which  implies the use of high-tech, efficient and environmentally friendly  solutions for both business development and  promoting the  sustainable development agenda of Armenia," the Bank's statement  reads. More detailed information on the terms of this loan product  can be found on the Converse Bank website at  https://conversebank.am/hy/eu4business/, or by calling (010)  51-12-11.