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Proparco and ACBA Bank cooperate to support SMEs and the agricultural sector in Armenia
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Proparco granted a $20 million credit line to ACBA Bank to help the bank further support SMEs and businesses in the agricultural sector, which play a key role in job creation and access to essential goods and services in the country.
Founded in 1995 by regional agricultural cooperatives, ACBA Bank is Armenia’s leading financial institution in the agricultural sector, notably thanks to a network of local offices in rural areas. Over the years, ACBA Bank has also grown to become one of Armenia’s top commercial banks, supporting new clienteles such as SMEs and businesses in the service sector.
Proparco’s $20 million loan will support the growth of the bank’s loan portfolio towards both SMEs and small businesses in the agricultural sector, which often lack access to the funding necessary to their growth.
This operation, the first between Proparco and ACBA Bank, will hold significant impacts for development. Proparco’s loan should indeed support more than 500 MSMEs, most of them in the agricultural sector, and about 12,750 jobs over the coming years.
It will thus contribute to Sustainable Development Goal #8 (Decent work and economic growth).