Press Release: Subsidiary fund created to help mitigate the impact of COVID-19 on Armenia’s economy
"Entrepreneur + State Anti-Crisis Investments Fund” created by the Armenian National Interests Fund (ANIF) to help mitigate the long-term impact of COVID-19 on the country’s economy. The Armenian Government will allocate up to AMD 50 billion, roughly $100 million, to the Fund.
On May 8, 2020 the Board of the Central Bank of Armenia confirmed the registration of the “Entrepreneur + State Anti-Crisis Investments Fund”, a subsidiary of ANIF. The aim of the newly registered Fund is to promote the inflow of private capital into the economy of Armenia, to ensure its long-term and sustainable growth by attracting private capital which would have otherwise shied away from investing during a time of prolonged uncertainty, triggered by COVID-19.
The Fund will co-finance projects in sectors of strategic importance for Armenia, as defined by the Governments’ economic program, by investing $1-$2 mln of equity per project. The program is limited to the investments made in Armenia and requires that for each State investment at least a further 3 are committed by the partnering entrepreneur and by commercial banks via loan.
“As Governments across the world have concluded that the economic impact of COVID-19 will be with us for a significant time, the Armenian Government has created this Fund, aiming to offset the increased risk premium which entrepreneurs face as uncertainty remains. The message to the business community is clear: the Armenian Government is by your side and willing to share the burden of risk”, said David Papazian, CEO of ANIF.