Support for the Financing of Energy Efficiency in the MSME Sector Loan Program by KfW
The GAF-EE Loan Program was designed to expand the supply of energy-efficiency financing in Armenia and meet demand from micro, small and medium-sized enterprises for investments that reduce energy consumption, lower CO₂ emissions and strengthen business competitiveness.
Phase I was established under a EUR 20 million loan agreement signed by KfW and the Central Bank of Armenia in March 2016 and was implemented with nine partner financial institutions. Only investment loans were eligible. The Program developed criteria for standard and non-standard energy-efficiency investments and progressively strengthened the minimum energy-saving requirement to 20%, reflecting the positive energy-saving performance achieved by financed projects.
A second phase of EUR 15 million was signed in December 2017 and entered into force in April 2019. Phase II was implemented with 12 partner financial institutions. Both phases were supported by technical assistance, including capacity building for partner financial institutions and energy-audit activities.
At year-end, the outstanding portfolio comprised 1,099 loans totaling AMD 24.2 billion (EUR 54.0 million), while the average disbursed loan amounted to AMD 31.8 million.
Starting from 2025 energy efficiency investments financing has been included in Renewable Energy and Energy Efficiency Program phase 7 and GAF-EE program has been closed.
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