Regional Economic Development in the Focus of the Banking System (photo)

Armeconombank participated in the "Banks and Business in Gyumri" expo, presenting its SME lending policy, financial instruments and banking products aimed at retail business development.

Held on November 6 in Gyumri on the initiative of the Union of Banks of Armenia (UBA), the event aimed to bring together representatives from the banking system, state institutions, and the private sector to discuss opportunities for boosting business advancement in the regions.

In his welcoming speech, UBA Chairman  Daniel Azatyan emphasized the importance of dialogue with businesses in the regions, noting that regional development is a key component of economic security. According to him, the banking system plays an essential role in uncovering the untapped potential of the regions and expanding financial accessibility, which is the main objective of the fourth regional event initiated by the UBA.

"In the Shirak region, Armeconombank’s SME financing is predominantly directed toward tourism infrastructure, including the development of hotel and restaurant businesses. At the same time, the manufacturing sector accounts for an essential share of financing. Notably, there has been a high interest in leasing instruments in the region recently, particularly in the context of acquiring modern construction equipment and installing solar panels. Furthermore, our cooperation with international financial institutions greatly contributes to ensuring the availability of financial resources in the region, enabling us to offer entrepreneurs even more flexible financial tools," noted Vahe Ghazaryan, Deputy CEO for Operations at Armeconombank, during the expo.

Notably, according to Arsen Bazikyan, Chief Executive Officer of "Armenian Leasing Company", a rather large leasing portfolio with strong growth dynamics has been formed in the region, and Armeconombank, as a relatively new participant in the leasing market, demonstrates excellent performance and potential.

According to Arman Petrosyan, founder of "Aratta Grand" LLC, an Armeconombank corporate client operating in the tourism sector, financial institutions offer quite flexible loan products for business development in the region. At the same time, in his view, alongside the activities of banks, the implementation of large-scale infrastructure projects and the attraction of targeted investments remain pivotal.

According to Satenik Ghevondyan, Acting Director of the German-Armenian Fund, within the framework of international programs, SME financing in the Shirak region is primarily directed toward agriculture, tourism, and manufacturing sectors, as well as energy-efficiency projects. As she assessed, a significant growth in large-scale financing by banks and credit organizations has been observed over the past two to three years, and such events play an important role in organizing the coordinated activities of all stakeholders within the financial ecosystem.

The conference dedicated to realizing the entrepreneurial potential of the Shirak region served as a new platform for cooperation, emphasizing the vital role of banks in territorial development.

Armeconombank is supervised by the Central Bank of Armenia.