April 4, 2012 -- Inspired by a steady demand for fresh milk and dairy products in Kotayk, a rural area in central Armenia, 31-year old Mamikon Yepremyan decided to start his own business. IFC’s $20 million loan last March
Armenia has been dogged by an economic slowdown in recent years, triggered in part by a recession in Russia, its neighbor and main trading partner. Since 2008, in part due also to the global economic crisis, foreign direct investments in the country
Armenia became a member and shareholder of IFC in 1995. IFC began providing advisory services in Armenia in 1999 and investing in the country in 2000. As of June 30, 2016, IFC’s long-term investment commitments have totaled $340 million*, including nearly $23 million mobilized from other lenders, financing 47 projects across a range of sectors, including financial markets, manufacturing, agribusiness, services, hydropower, and mining. In addition, IFC has supported trade transactions more than $130 million** through its trade finance program. IFC has also implemented a number of advisory projects to encourage private sector development.
*Starting on July 1, 2014, IFC shifted from reporting its cumulative commitment volume as a sum of short-term trade finance and long-term finance to reporting only long-term commitments. Short-term finance is now reported as the average annual outstanding portfolio balance in a given fiscal year.
**Total trade supported is measured as all trade transactions in which the given country is either the country of import or the country of export.
IFC Strategy in Armenia
One of the key objectives of the World Bank Group Country Partnership Strategy in Armenia is to support competitiveness and job creation. IFC contributes to this by:
Promoting greater access to finance for small and medium enterprises, and providing finance to competitive domestic companies to help them grow and create jobs;
Helping develop Armenia's mining sector in a sustainable and socially inclusive manner;
Establishing a market for energy efficiency and renewable energy investments;
Improving the country's investment climate and decreasing the costs of doing business, with a particular focus on the agribusiness sector.
Details of projects currently in progress can be found in IFC Disclosure. For completed projects see press releases below or visit the IFC Press Room.