1. FINANCE FOR ECONOMIC DEVELOPMENT (FED) PROGRAM LAUNCH EVENT July 17, 2013

2. THE FED PROGRAM Implemented by Cardno Emerging Markets Group USA Ltd. Implemented by Cardno Emerging Markets Group USA Ltd. A four year, $ 3.7 million program, funded by USAID

3. THE FED PROGRAM 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

4. THE FED PROGRAM 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

5. COORDINATION WITH COUNTERPARTS Government Counterparts CBA, MoF, MoE, MLSA Financial Sector UBA, UCORA, AAAA, ASA, etc. Donors World Bank, IFC, EBRD, etc. USAID Projects EDMC, PRIP, TRP, Counterpart, PRP

6. Component 1: Financial Intermediation 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

7. Component 1: Financial Intermediation 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

8. Component 1: Financial Intermediation Promote communication between lenders and local communities, associations and groups of MSMEs and rural enterprises 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 Promote financial literacy of micro and rural enterprises, and their awareness of available financial services

9. Component 2: Institutional Framework 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

10. Component 2: Institutional Framework 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

11. Component 2: Institutional Framework Financial Sector Strategy Development Assistance in developing a strategy for strengthening the financial sector’s ability to support economic activity, development and growth in Armenia.

12. Component 3: Pension Reform Support CBA in: Regulating, supervising and setting governance standards for pension fund operators Formulating investment policies for pension contributions

13. Component 3: Pension Reform Capital markets development: Broadening the choice of debt and equity financial instruments available for investing pension contributions

14. Component 3: Pension Reform In partnership with CBA, PRIP and PSAC: Enhancing financial literacy and public awareness of pension system participants