EIB Global Provides €55Million Loan to Acba Bank to Boost Armenian MSMEs

The loan reflects EIB Global’s renewed commitment to fostering economic development and stimulating private-sector growth in Armenia.

EIB Global, the European Investment Bank's international arm, is lending €55 million to Acba Bank in Armenia to enhance financing for micro, small, and medium-sized enterprises (MSMEs) and mid-sized companies within the country. This marks EIB Global's first direct credit line to a commercial bank in Armenia.

The loan reflects EIB Global's renewed commitment to fostering economic development and stimulating private-sector growth in Armenia. The funds will be distributed through Acba Bank at affordable rates to support local businesses, promoting economic advancement and spurring investments. Over 200 MSMEs, particularly women-led enterprises, are expected to benefit from this initiative, helping to sustain more than 6,000 jobs.

Teresa Czerwińska, EIB Vice-President responsible for operations in Armenia, expressed enthusiasm about the new partnership. "We are excited to collaborate with Acba Bank. Our goal is to strengthen and build resilient economies that generate jobs. This loan will support the growth and competitiveness of Armenian MSMEs, including those in rural areas, and will encourage entrepreneurship in alignment with the European Union and Armenia's priorities."

The loan is part of EIB Global's Armenia MSME Resilience Facility, designed to improve access to finance for the private sector. This facility aims to foster long-term economic resilience by providing funding to local enterprises through Armenian banks.

Jan Plešinger, Chargé d'Affaires a.i. of the EU Delegation to Armenia, highlighted the attractiveness of the loan conditions. "We are ensuring that the loan terms, supported by an EU grant for local currency, are highly appealing. With the forthcoming Neighbourhood Investment Platform (NIP) grant, this initiative will complement the EIB's risk operations, enhancing financial accessibility and support for local businesses."

This operation aligns with the EU's goal of supporting 30,000 MSMEs as part of the Economic and Investment Plan for the Eastern Partnership, focusing on a sustainable, innovative, and competitive economy in Armenia.

Hakob Andreasyan, CEO of Acba Bank, emphasized the significance of the loan. "Acba Bank is embarking on a major direct collaboration with the European Investment Bank by securing €55 million. As a leading funder of enterprises in Armenia, this funding will significantly boost the development of MSMEs, which are the backbone of our economy."