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Media Lending in Armenia - USAID Core Media Support Program

Project Summary

 

USAID\'s Core Media Support Program in Armenia promotes independent media as a means of strengthening civil society in the country. TCGI is developing new financing structures for Armenian media in order to reduce dependence on State funding and budgetary control.

 

TCGI is working to implement a revolving loan fund in order to build free and independent media in Armenia. Working with the International Research and Exchange Board, TCGI is establishing the loan fund and a local foundation to manage the fund. With creative structuring, the fund will help alleviate the payment burden on the borrowers, while introducing the media to commercial borrowing practices and requirements. It will also create a culture of commercial business operations within the media sector. The media loan facility will involve local financial institutions in media financing by offering risk-sharing mechanisms, such as opportunities for co-financing. Having a stake in the media lending will familiarize the banks with this market segment and encourage them to conduct proper due diligence and ensure repayment. And finally, to the extent possible, the Foundation will seek to amplify the effect of USAID financing by leveraging local funds.