Armenia to get financing from EBRD’S TAM/BAS programs
YEREVAN, June 7, /ARKA/. The European Union has pledged additional funds of €5 million to support the EBRD’s TurnAround Management (TAM) and Business Advisory Service (BAS) Programs. The programs were presented today in Yerevan.
While speaking at the presentation EBRD Yerevan Office head, Valeriu Razlog , said the Bank focuses on lending to small and medium-sized enterprises which are the ‘backbone’ of Armenia’s economy. He said TAM/BAS programs are a key component of EBRD’s activity in Armenia and is set to expand further.
TAM/ (BAS) programs provide micro, small and medium-sized enterprises with direct assistance from experienced business advisors and consultants, helping them to adapt to the demands of a market economy. The technical assistance from the EU is earmarked for use in the Eastern Partnership countries, which include Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. The committed funds are sufficient to implement over 30 TAM and over 250 BAS projects in the region.
The main beneficiaries of the TAM and BAS programs will be smaller businesses located in the Eastern Partnership countries. The Bank is also planning to engage relevant ministries, SME development agencies, investment promotion and regional enterprise agencies as well as regional chambers of commerce, which will play an important role in the successful implementation of the TAM and BAS programs.
Deputy Armenian economy minister Karine Minasian said the government prioritizes SME development and supports establishment of new businesses.
Jean-Christophe Gayrand, head of Operations Unit of the European Commission’s Delegation to Armenia, said SME development is a priority in Europe as well, because it is ‘a real force for creation of added value, new jobs and promotion of innovations.’
The EBRD’s BAS Program, launched in 1995, is designed to assist individual enterprises to engage with local consultants on specific projects with a rapid payback. Additionally, BAS carries out market development activities to develop the capacity of SMEs and local business advisory providers.
The objective of the TAM Program, started by the Bank in 1993, is to help small and medium enterprises transform themselves through structural changes and the development of new business skills at senior management level. TAM’s advisory services are provided by experienced directors, industry experts and financial specialists.
The TAM and BAS supported projects bring best business standards and improve SME management skills like planning, production, quality control and marketing, thereby making them more competitive and able to attract external financing. Together with the development of local business consultancy skills, TAM and BAS contribute to the development of a sustainable market economy.
The BAS Program in Armenia was established in 2003. Over €5.3 million of donor funding has been committed in 842 BAS projects in Armenia. -0-
