EIB Group and Ameriabank Launch €106 M Financing Initiative to Boost Armenian Small Businesses

New EU-backed guarantee programme expected to support 900 MSMEs and sustain more than 5,000 jobs across Armenia.

The European Investment Bank (EIB) Group and Armenia's Ameriabank have launched a major new financing initiative aimed at expanding access to credit for micro, small, and medium-sized enterprises (MSMEs) across Armenia, strengthening the country's private sector and supporting long-term economic resilience.

Under the agreement, the EIB and the European Investment Fund (EIF) — together forming the EIB Group — will provide a partial portfolio guarantee enabling Ameriabank to build a new loan portfolio worth up to €106.25 million.

The programme is designed to help Armenian businesses, particularly those struggling to access affordable financing, secure the capital needed to invest, expand operations, create jobs, and improve competitiveness.

Officials say the initiative is expected to directly benefit approximately 900 Armenian MSMEs while sustaining more than 5,000 jobs nationwide.

The agreement marks the second direct operation between the EIB and Ameriabank, further strengthening cooperation between European financial institutions and Armenia's banking sector amid broader efforts to deepen economic ties between Armenia and the European Union.

The signing ceremony took place in Yerevan and was attended by EIB Vice-President Karl Nehammer, Ameriabank Chief Financial Officer Hovhannes Toroyan, and European Union Ambassador to Armenia Vassilis Maragos.

Speaking at the event, EIB Vice-President Karl Nehammer emphasized the central role small businesses play in Armenia's economy and the importance of accessible financing for economic growth.

"Small businesses are the backbone of Armenia's economy, and access to finance can make all the difference for their growth," Nehammer said.

"With this agreement, we are creating real opportunities for entrepreneurs to invest, expand and build more resilient businesses."

"It's about making sure good ideas are not held back by lack of funding," he added.

MSMEs represent a critical component of Armenia's economy, accounting for a significant share of employment, entrepreneurship, and economic activity.

However, many smaller firms continue to face challenges obtaining long-term financing due to high borrowing costs, limited collateral, and financial market constraints.

The guarantee structure provided through the EIB Group is intended to reduce lending risks for Ameriabank, enabling it to extend more affordable financing to businesses that may otherwise struggle to secure credit.

The initiative is backed by the EU4Business Guarantee Facility, part of the European Union's broader strategy to support economic development, innovation, and private-sector competitiveness across Eastern Partnership countries.

EU Ambassador to Armenia Vassilis Maragos described the programme as an important example of expanding economic cooperation between Armenia and the European Union.

"Supporting small businesses means supporting jobs, innovation and the long-term prosperity of Armenia," Maragos said.

"Through this partnership with Ameriabank and the European Investment Bank, we are helping Armenian companies access the financing they need to grow, diversify and find new markets."

The Ambassador also linked the initiative to the recently adopted Strategic Agenda for the EU–Armenia Partnership, which outlines deeper political and economic cooperation between the two sides.

"The Strategic Agenda reaffirms the European Union's commitment to supporting Armenia in strengthening its societal resilience and economic competitiveness, which go hand in hand with private investment and the creation of new jobs," Maragos said.

Analysts say access to financing remains one of the most important barriers facing business development across many emerging economies, particularly for smaller enterprises seeking to modernize, digitize, or expand into export markets.

Development finance experts note that guarantee mechanisms such as this one can play a critical role in unlocking private-sector lending while stimulating broader economic growth.

Ameriabank Chief Financial Officer Hovhannes Toroyan said the partnership aligns closely with the bank's long-term strategy of supporting Armenia's entrepreneurial sector.

"Supporting small businesses is a strategic direction for Ameriabank, and this partnership allows us to reach even more businesses that are ready to grow but need the right financial support to do so," Toroyan said.

"By expanding access to financing, we will continue to help entrepreneurs turn their plans into reality, strengthen their operations, and — most importantly — contribute more actively to Armenia's economy."

"Our partnership is about enabling progress where it matters most," he added.

The financing initiative comes at a time when Armenia is seeking to strengthen economic resilience, diversify growth drivers, and attract greater investment amid ongoing regional geopolitical and economic challenges.

European financial institutions have increasingly expanded support for Armenia in recent years through infrastructure investment, SME financing programmes, energy transition initiatives, and sustainable development projects.

The EIB Group says supporting private-sector growth remains central to promoting economic stability, job creation, and long-term prosperity in the region.