A member of the World Bank Group, IFC and IAB International Academy of Business will hold seminars in coming year to help Armenian banks strengthen risk management systems and on overdue loans.

According to IFC, The project aims to support the strengthening of banks' risk management systems continuing SMEs loans in case of AMD devaluation.

The initiative is part of the IFC Strengthening Financial Systems in Europe and Central Asia project, funded by the Swiss State Secretariat or Economic Affairs (SECO).

“In challenging economic times, financial institutions tend to tighten their lending and focus on mid-size and large businesses. This results in credit becoming less accessible to SMEs.”, said Jan van Bilsen, IFC Regional Manager for the South Caucasus.

According to him, this initiative aims to help Armenian banks strengthen their risk management practices and continue financing small businesses, a key engine of economic growth.

“Given increased volatility, additional measures are required to help develop the foundation of the financial sector and support its growth,” said Araksya Martirossian, CEO of IAB International Academy of Business.

IFC also informed that the efforts also aim to help Armenian financial institutions understand their capital adequacy models, especially important in light of increased minimum capital regulatory requirements.