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.

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. We expect to reach 27,000 clients, with a portfolio of $26 million, by the end of FY2010.