FINANCE FOR ECONOMIC DEVELOPMENT (FED) PROGRAM

LAUNCH EVENT

July 17, 2013

THE FED PROGRAM

2/6

Implemented by Cardno Emerging Markets Group USA

Ltd.

A four year, $ 3.7 million program, funded by USAID

THE FED PROGRAM

3/6

Goal of the program:

Broaden and deepen financial intermediation and improved financial services for micro, small and medium enterprises , to promote economic development and growth.

Support the sound development of the financial sector through enhanced legal and regulatory practices and opportunities for financial sector innovation and infrastructure development.

Support pension reform through broadening capital markets

THE FED PROGRAM

4/6

3 expected results:

Increased availability of relevant, affordable and effective financial services for MSMEs throughout Armenia

Improved regulatory and institutional framework for a more effective and stable financial sector

Strengthened financial sector foundations for pension reform

COORDINATION WITH COUNTERPARTS

5/6

Government Counterparts

CBA, MoF, MoE, MLSA

Financial SectorUBA, UCORA, AAAA, ASA, AIA

DonorsWorld Bank, IFC, EBRD, etc.

USAID ProjectsEDMC, PRIP, TRP, Counterpart, PRP

Component 1: Financial Intermediation

6/20

Support increased availability of financial services to MSMEs throughout Armenia

Strengthen the financial sector (bank and non-bank)

Cooperation and joint action plans with UBA and UCORA

Component 1: Financial Intermediation

7/20

Promote new financing sources for MSMEs:

Equity, investment funds, IT-based products

Support start-up of ECA (export credit insurance agency)

Use of USAID DCA guarantees to support MSME financing

Component 1: Financial Intermediation

8/20

Promote communication between lenders and local communities, associations and

groups of MSMEs and rural enterprises

Promote financial literacy of micro and rural enterprises, and their awareness of

available financial services

Component 2: Institutional Framework

9/20

Capacity-building in the area of:

Financial markets regulation, in accordance with international standards and best practices

Accounting, auditing and actuarial professions, with support and technical assistance to professional bodies

Component 2: Institutional Framework

10/20

Support for:

Expanded usage of IT to develop financial services for MSMEs

Strengthened framework for secured transactions and collateral registry

Increased pool of financial sector professionals in the workforce

Component 2: Institutional Framework

11/20

Component 3: Pension Reform

12/20

Support CBA in:

Regulating, supervising and setting governance standards for pension fund operators

Formulating investment policies for pension contributions

Component 3: Pension Reform

13/20

Component 3: Pension Reform

14/20