EIB and Ameriabank Sign €105 M Deal to Boost Armenian MSMEs and Green Investments

The financing aims to enhance access to affordable loans, benefiting approximately 400 MSMEs and sustaining over 15,000 jobs across Armenia.

The European Investment Bank (EIB Global) has signed its first-ever direct financing agreement with Ameriabank, providing €105 million to support micro, small, and medium-sized enterprises (MSMEs) and mid-caps in Armenia. This marks the largest direct loan by the EIB to a financial institution in the South Caucasus region, underscoring its commitment to economic development, job creation, and sustainable finance in Armenia.

Supporting Armenian Businesses and Green Growth

The financing aims to enhance access to affordable loans, benefiting approximately 400 MSMEs and sustaining over 15,000 jobs across Armenia. At least 20% of the loan will be allocated to green investments, aligning with Armenia's climate resilience and sustainability goals.

EIB Vice-President Teresa Czerwińska, who oversees EIB operations in Armenia, highlighted the significance of the partnership:

"We are delighted to partner with Ameriabank to strengthen Armenia's private sector and promote sustainable economic growth. This operation is a milestone, constituting a significant step forward in our commitment to fostering sustainable development and economic resilience, in line with both the European Union and Armenia's priorities."

Key Features of the Agreement

• Local Currency Financing: Part of the loan will be disbursed in Armenian dram (AMD), mitigating currency risk for MSMEs.
• EU Grant Support: The European Union is providing grant funding to keep interest rates affordable for local businesses.
• Alignment with the EU's Economic and Investment Plan for Armenia: This initiative contributes to the EU's goal of supporting 30,000 MSMEs in Armenia to foster an innovative, competitive, and green economy.

Expanding Armenia's Economic Resilience & Growth

The Head of the EU Delegation to Armenia, Ambassador Vassilis Maragos, emphasized that this financing is part of the broader European Investment Plan (EIP) for Armenia, aimed at driving economic diversification and sustainable development:

"With this support to Armenian MSMEs, we are delivering on our commitment to enhance access to finance, including local currency loans. This assistance forms part of the Resilience and Growth Plan, under which the EU and EIB will invest €270 million in Armenia from 2024 to 2027. A significant portion will target business development, particularly in technology, start-ups, and new export opportunities, strengthening Armenia's economic competitiveness."

Ameriabank's Role in Expanding Access to Finance

Ameriabank, Armenia's largest lender, will use its extensive branch network to channel the EIB's funds to underserved businesses, helping them scale operations, enhance productivity, and transition to greener practices.

Ameriabank Chief Financial Officer Hovhannes Toroyan highlighted the bank's long-standing commitment to supporting Armenian businesses:

"We are pleased to partner with the European Investment Bank (EIB Global) to reaffirm our commitment to supporting MSMEs in Armenia. This collaboration will provide local businesses with affordable funding, enabling them to reach their full potential and contribute significantly to Armenia's economic growth. As the largest lender in Armenia, with a solid portfolio in green and sustainable financing, we are confident in our ability to foster a more sustainable and inclusive economic future for Armenia."

Future Outlook: €270 Million in EIB Investments by 2027

The EIB and EU plan to invest a total of €270 million in Armenia under the Resilience and Growth Plan (2024-2027), with a strong emphasis on:

Business development (tech, start-ups, and export-driven enterprises)

Infrastructure modernization

Green energy transition

Financial inclusion for MSMEs

This landmark EIB-Ameriabank agreement is expected to be a catalyst for Armenia's private sector expansion, providing much-needed financial resources while aligning with global sustainability and digital transformation trends.