Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to U.S. bidders.
Last Published: 2/12/2019

Private Banks limit their lending operations to short-term loans in local currency at relatively high rates of interest.  There are additional fees charged by the banks, such as: an account servicing one-time fee, a non-utilization fee, a prepayment fee, a default charge, a default interest rate, and a covenant breach fee. These fees add additional costs to the actual interest.  Banks usually demand collateral of adequate or higher market value (houses, cars, gold, etc.).  Project financing is very limited unless implemented through subsidized loan programs funded by foreign governments and multilateral financial institutions, and aimed at private business development for specific categories of organizations.  Even semi-guaranteed loans tend to have annual interest rates that are higher then internationally.  A number of governmental agencies provide project financing, export financing and insurance services to investors in Armenia.  Most projects financed by international institutions such as the World Bank, EBRD or ADB are contracted on a tender basis.

U.S. organizations:
The Small Business Administration (SBA) offers financing packages specifically targeted to assist U.S. exporters expand overseas by funding export transaction costs or financing for the export of goods or services. SBA programs can provide the liquidity needed to accept new orders, enter new markets, and compete more effectively in the international marketplace.  Examples include: Export

Express Loan Program, Export Working Capital, International Trade Loans, and SBA and EX-IM Bank Co-Guarantee program.

Ex-Im Bank provides a framework for financing the purchase of U.S. exports.  For more information regarding types of export finance available, contact: Export-Import Bank of the United States, 811 Vermont Avenue, N.W., Washington D.C. 20571 Tel: (800) 565-EXIM or (202) 565-3946 Fax: (202) 565-3380.

U.S. Trade and Development Agency's (TDA) primary activity is the funding of feasibility studies performed by American firms that examine the technical, economic, environmental, and financial aspects of major development projects.  TDA helps U.S. companies pursue overseas business opportunities through: funding of feasibility studies, orientation visits, specialized training grants, business workshops and various forms of technical assistance.  For more information on TDA programs and application procedures, contact: U.S. Trade and Development Agency, Room 309, SA-16, Washington DC 20523-1602, Tel: (703) 875-4357, Fax: (703) 875-4009, E-mail: info@tda.gov.

Overseas Private Investment Corporation (OPIC) is a U.S. government agency that encourages U.S. businesses to invest in developing countries and emerging market economies, creating U.S. jobs and exports.  OPIC assists American investors through three principal programs: (1) financing investment projects through direct loans and loan guarantees (project finance), (2) insuring investment projects against a broad range of political risks, and (3) providing a variety of investor services.  OPIC participation per project can range from as low as 2 million USD to as high as 200 million USD.  For further information on OPIC’s regular finance program, contact: Finance Department, Overseas Private Investment Corporation, 1100 New York Avenue, N.W., Washington, DC 20527, Tel: (202) 336-8480, Fax: (202) 408-9866

Multilateral Development Banks

The International Finance Corporation (IFC) finances project investments and insurance in Armenia.
Arman Barkhudaryan

Senior Investment Officer
Tel: +374 10 54 52 41/42/43
E-mail: abarkhudaryan@ifc.org
Local Office: 9 Grigor Lousavorich Street, Yerevan 0015, Armenia

The Asian Development Bank’s (ADB) - https://www.adb.org/  private sector operations are steadily expanding in Armenia, and it still supports public sector projects.  In March 2010 ADB approved its first private sector infrastructure investment in the country. 

ADB Armenia Resident Mission (https://www.adb.org/countries/armenia/main)
10 V. Sargsyan Street, 3rd Floor, Offices 79-81, Piazza Grande, Yerevan 0010, Republic of Armenia
Tel.: (374-10) 10 546370 / 546371 / 546372 / 546373

The European Bank for Reconstruction and Development (EBRD) also actively supports public and private sector development in Armenia.

Yerevan Resident Office (https://www.ebrd.com/armenia.html)
Piazza Grande Business Centre,
2nd floor, rooms 95-97,
10 Vazgen Sargsyan Street, Yerevan 0010, Republic of Armenia
Tel: 00 374 10 590901
U.S. Commercial Service Liaison Offices at the Multilateral Development Banks (European Bank for Reconstruction and Development, Asian Development Bank, World Bank)

The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the European Bank for Reconstruction and Development, the Asian Development Bank and the World Bank. These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders. Learn more by contacting the Commercial Liaison Offices to the European Bank for Reconstruction and Development, the Asian Development Bank and the World Bank.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


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