Armenia

Armenia

Economy:
Following severe economic decline in the early 1990s, due to the Soviet collapse and ethnic conflict with Azerbaijan, Armenia has enjoyed strong growth since 1995. GDP reached $15.7 billion GDP with 13.9 percent growth in 2005. The country has also managed to slash inflation and stabilize its currency.

Many poor Armenians are unable to participate in the economy's growth. Microbusinesses offer a way out of poverty for Armenia's unemployed but, with a weak local banking sector, there is great need for financial services for small entrepreneurs.

Climate for microfinance:
• The unstable and inadequate services offered by Armenia's local banking sector have left a significant void for small entrepreneurs.
• Collateral requirements, contract enforcement, property rights issues, and a lack of local savings have made bank loans inaccessible to many.

FINCA Armenia (Founded 1999)

Headquartered in Armenia's capital city of Yerevan, FINCA Armenia has regional satellite offices in Ijevan, Vanadzor and Gyumri that serve clients in multiple locations. FINCA operates in nine of Armenia's eleven regions. The client base and loan portfolio have grown steadily since 1999.

Nargiz Ohanyan can send her children to university thanks to FINCA

FINCA Armenia

Clients: 32,597
Village Banking groups: 8,536
Average loan: $771
Loans outstanding: $19,498,363
On-time repayment: 99.5%
Services: Village Banking, individual and consumer lending

Branches:

Gyumri
Ijevan
Vanadzor
Yerevan

Background

Geography: Situated in the Caucasus region, where Asia meets Europe, and slightly smaller than the U.S. state of Maryland, Armenia is bordered by Azerbaijan, Iran, the Azerbaijan-Naxcivan exclave, Turkey, and Georgia. Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and has militarily occupied 16% of Azerbaijan since the early 1990s.
Population: 3.0 million
Ethnicities: Armenian 97.9%, Yezidi (Kurd) 1.3%, Russian 0.5%, other 0.3%
Religions: Armenian Apostolic 94.7%, other Christian 4%, Yezidi 1.3%
Average life expectancy: 71.8 years
Median age: 30.42 years
Literacy: 98.6 percent
Government: Republic

Program information is updated on a monthly basis from reports from the field.