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Development Credit

Through the Development Credit Authority (DCA), a worldwide credit initiative, USAID has the ability to mobilize private capital through the use of partial guarantees to stimulate investment in targeted sectors of the economy.

Credit guarantees have been used by USAID/Armenia for this purpose since 2003 to stimulate lending in the SME and agricultural sectors (with a focus on women-owned and managed rural enterprises) to promote export finance and to stimulate the development of capital markets through the issuance of commercial paper and bonds. More recently, USAID/Armenia expanded its outreach, offering partial guarantees to a mortgage company and a microfinance institution. The guarantees were crafted to assist these entities in attracting private financing to expand their lending activities.



The Securitized Bond Issuance DCA Guarantee facilitates the issuance of a securitized bond originated by a group of universal credit organizations (UCOs). As a result, the UCOs have been able to expand their lending to 800 rural enterprises in Armenia. 

The Multibank Loan Portfolio DCA Guarantee supports lending to small and medium enterprises in selected value chains that have high growth potential.