2004 Armenia Microfinance Analysis and Benchmarking Report

In Armenia Benchmarking Report 2004, Microfinance Information Exchange, Inc. (MIX) discusses the microfinance sector in Armenia.

The Armenia Benchmarking Report 2004 focuses mainly on non-profit MFIs that serve over 82 percent of the known borrowers currently being reached in the Armenian microfinance market.2 Some MFIs have a much stronger position in the market than others. For example, the consolidated outstanding portfolio of the three largest MFIs surveyed accounts for 72 percent of the total portfolio outstanding of the seven MFIs surveyed, while in terms of active clients the portion of these three MFIs is as high as 84 percent. Even though the median age of these MFIs is 5.5 years, they have a limited range of products, and many still offer only modifications of a single loan product. The majority of surveyed MFIs focuses on serving urban clients engaged mainly in small trade or services that require short-term working capital loans. The portfolio is not evenly distributed throughout Armenia, almost one-third of it is allocated to the city of Yerevan alone. However, there are also institutions which focus on rural lending. Nevertheless, the outstanding portfolio of all surveyed MFIs is not well diversified, with roughly half invested in trade (mainly open market trade), 36 percent in agriculture, 10 percent in production and services and 2 percent in social loans.