European Investment Bank in Armenia Welcome Speech Mr. Jan Vapaavuori Vice President Yerevan 18 November 2016 European Investment Bank 1
European Investment Bank in Armenia Welcome Speech Dr. Piotr Antoni Switalski Head of Delegation of the European Union to Armenia 2
European Investment Bank in Armenia Welcome Speech Mr. Nerses Yeritsyan Central Bank of the Republic of Armenia 3
European Investment Bank in Armenia Yerevan 18 November 2016 European Investment Bank 4
1 EIB the EU bank at a glance EIB Activity outside European Union EIB Activity in Armenia Types of financing provided 5
EIB the EU bank at a glance EU Institution EU s long-term lending bank set up in 1958 by the Treaty of Rome. EIF over 20 years of experience in SME support. AAA rated All major rating agencies with a strong capital base. Funding on the international capital markets. Largest multilateral lender / borrower 2015 record activity level > EUR 80 bn EIB. Group More than 440 projects each year in over 160 countries. Objectives Finance and expertise for sound, sustainable investment projects in support of EU policy objectives. Governance Board of Governors Board of Directors Management Committee Headquartered in Luxembourg Around 2,900 staff supported by network of external offices 6
EIB the EU bank at a glance The EIB is the European Union's bank Loan financing Facilities: Direct loans Intermediated loans More than 90% of lending is within the EU Shareholders: All EU Member States The EIB Capital Breakdown: 7
EIB Lending Priorities The EIB operates in the EU Neighbourhood under the External Lending Mandate, whose priorities are: Climate change adaptation and mitigation Development of social and economic infrastructure Development of the local private sector, in particular SMEs 8
EIB the EU bank at a glance 2 EIB activity outside European Union EIB Activity in Armenia Types of financing provided 9
EIB Coverage of EU Neighbourhood 10
EIB Activity in EU Neighbourhood The EIB finances projects in nearly 140 non-eu countries. In 2015 EIB lending outside the EU accounts for 11% of its global activity, i.e. some EUR 8bn. Eastern Neighbours EUR 1.2bn EFTA & Enlargement Countries EUR 2.5bn European Union EUR 69bn EUR 8bn Outside EU Africa, Caribbean, Pacific, South Africa EUR 1.2bn Southern Neighbours EUR 1.7bn Asia and Latin America EUR 1.4bn 11
EIB the EU bank at a glance EIB activity outside European Union 3 EIB activity in Armenia Types of financing provided 12
EIB Activity in Armenia Progress to date In Armenia EIB operates under the External Lending Mandate, whose priorities are: The EIB has been operating in Armenia since 2008 The EIB has provided investment loans totaling EUR 321m. Development of the local private sector, in particular SMEs Development of social and economic infrastructure Climate change adaptation and mitigation EIB has financed various projects in Armenia including: WATER 2 Projects in Water Sector ENERGY The Caucasus Transmission project SMEs Credit lines to support local SMEs SOLID WASTE The Yerevan Solid Waste phase I TRANSPORT Armenia M6 Interstate Road Yerevan Metro Rehabilitation 13
EIB Activity in Armenia Signed loans portfolio development from 2008 to date (EURm) Loans Targeting Development Technical Assistance to Support Implementation Armenia rural framework loan TA EUR 1,500,000 Armenia M6 Interstate Road TA EUR 1,000,000 Armenia Loan4SMEs TA EUR 500,000 Water sector Assets Registration and Valuation TA EUR 700,000 14
EIB the EU bank at a glance EIB activity outside European Union EIB activity in Armenia 4 Types of financing provided 15
Types of Financing Provided Improving conditions and enhancing Access to Finance for SMEs and MidCaps EIB Intermediated Lending The Loan to SMEs and MidCaps Higher risk projects for innovation InnovFin Providing risk financing to stimulate entrepreneurship and innovation. Financing tools and advisory services, covering the entire value chain of Research and Innovation to support investments from small to the large enterprises Feasibility studies, technical, economic and financial appraisals, strengthening project management and skills, institutional Capacity- Building programmes Technical Assistance For project preparation and implementation (Eastern Partnership Technical Assistance Trust Fund, Neighborhood Investment Facility) Public sector loans Providing support to the economic and social development of the country, thereby improving the life of Armenia s citizens Well-diversified investment portfolio important for the Country s Development in the areas of transport, public transport, energy and water sector infrastructure 16
SMEs - the backbone of the economy SMEs are the backbone of the economy and contribute to job creation and economic growth SMEs have been severely affected by the economic crisis, facing the triple challenge of: Loans and guarantees Financial Intermediaries limited access to finance the relatively high cost of finance the low risk-taking capacity of banks Access to Finance remains the most pressing challenge for SMEs! SMEs and MidCaps 17
Looking Forward EIB will continue to support SMEs and promote local financial and private sector development in Armenia through its wide product range, including intermediated lending and advisory services. Climate change adaptation and mitigation Exploring Energy Efficiency in Armenia Development of social and economic infrastructure Strengthening Water Sector Support School Seismic Safety Improvement Development of the local private sector, in particular SMEs Further Supporting Access to Finance for SMEs 18
Thank you for your attention! Marion Hoenicke Head of Division Lending Operations in Neighbouring Countries, Banks Phone: (+352) 4379-87406 email: m.hoenicke@eib.org European Investment Bank 98-100, boulevard Konrad Adenauer L-2950 Luxembourg. 19