The Armenian government, at Thursday’s cabinet session, decided to acquire the share of the EU-Armenia SME Fund within the framework of programs aimed at long-term economic development.

The respective explanation notes that the Armenian government has approved a second program under the long-term economic development programs with a total amount of 80 billion drams, under which the state will directly participate in the EU-Armenia SME Fund managed by Amber Capital Armenia company, with a total amount equivalent to $3 million, through the acquisition of the aforesaid fund’s shares.

One of the main goals of the EU-Armenia SME Fund is to create a precedent for the operation of such funds and foundations, which in turn will contribute to the development of the capital market and the formation of alternative financial instruments in the Armenian economy, as well as the overall improvement of corporate governance standards.

The EU-Armenia SME Fund began its operations in January 2020. Its investors include institutions such as the European Bank for Reconstruction and Development, the European Union, pension fund managers, the Netherlands Development Bank, and several others.

The Armenian government joined the EU-Armenia SME Fund in 2021. The Armenian government has committed to invest a total amount equivalent to $3 million in this fund.

The acquisition of the EU-Armenia SME Fund shares by the Armenian government is planned to be carried out in three portions, each up to an amount equivalent to $1 million.

As of October 31, the government has actually transferred a total of $1,953,501 to the EU-Armenia SME Fund. Therefore, considering that the amount of shares already acquired approaches $2 million and that the EU-Armenia SME Fund has submitted an amount of $119,041.98 which has not yet been paid by the government, the next acquisition of the EU-Armenia SME Fund’s shares under point 3 of appendix 2 of the decision can be made only on the basis of a government decision.

The presented draft proposes, to acquire the next share in the EU-Armenia SME Fund equivalent to $1 million—and based on the results of the report on the investments of the previous portion.