EIB Global and Ardshinbank Sign €100 Million Deal to Boost Armenia’s MSMEs

EU Ambassador Vassilis Maragos stressed that small and medium-sized enterprises are the backbone of Armenia’s economy.

The European Investment Bank’s development arm, EIB Global, and Ardshinbank OJSC have entered a significant new phase of cooperation with the signing of a €100 million loan agreement aimed at expanding access to finance for micro, small and medium-sized enterprises (MSMEs) and mid-cap companies across Armenia. The agreement represents the first-ever direct partnership between EIB Global and Ardshinbank and is expected to play a pivotal role in strengthening Armenia’s private sector and long-term economic resilience.

The financing facility will enable Ardshinbank to channel EIB Global-backed credit to Armenian businesses seeking to modernise operations, expand production capacity, invest in new technologies and improve their competitiveness in both domestic and international markets. By improving access to long-term and affordable finance, the initiative directly addresses one of the key constraints faced by Armenian enterprises, particularly smaller firms with limited borrowing options.

A notable feature of the agreement is its strong sustainability component. At least 10% of the total facility will be dedicated to green lending, supporting projects related to energy efficiency, renewable energy and other environmentally sustainable investments. This focus aligns with the European Union’s broader climate and green transition objectives, while also helping Armenian companies reduce energy costs, lower emissions and adopt more resource-efficient business models.

To further enhance the impact of the operation, part of the financing may be provided in local currency, reducing foreign exchange risks for Armenian borrowers. In addition, the European Union is contributing grant funding to support the facility, ensuring that loan conditions remain affordable and accessible for businesses. This blended finance approach is designed to maximise outreach while maintaining financial sustainability.

Overall, the programme is expected to benefit around 300 enterprises across Armenia and help sustain more than 10 000 jobs, delivering tangible economic and social impact. By supporting investment, innovation and job creation, the operation contributes directly to inclusive growth and regional development.

The agreement was formally signed on 12 December 2025 in Yerevan. The signing ceremony was attended by Artak Ananyan, Chairman of the Management Board of Ardshinbank, and Marion Hoenicke, representing EIB Global. The European Union Ambassador to Armenia, Vassilis Maragos, addressed the event on behalf of the EU, highlighting the strategic importance of the partnership.

Commenting on the agreement, EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Armenia, underlined the role of local businesses in sustaining economic growth and employment. She emphasised that the partnership will help Armenian MSMEs access the resources needed to invest, adapt and build resilience, while also advancing the country’s green transformation.

EU Ambassador Vassilis Maragos stressed that small and medium-sized enterprises are the backbone of Armenia’s economy. He noted that improving access to finance for these firms is a core pillar of the newly adopted Strategic Agenda for the EU–Armenia Partnership, and that the initiative will support job creation and greener, more sustainable growth.

For Ardshinbank, the agreement represents a major step in expanding access to high-quality international funding. Chairman Artak Ananyan described the partnership as an important milestone that will enable the bank to provide long-term financing to businesses driving growth, innovation and employment. He expressed confidence that the cooperation with EIB Global will contribute to building a stronger, more competitive and more prosperous Armenian economy.