EIB Global and EU Unveil €70M Initiative to Empower Armenian MSMEs and Foster Sustainable Growth

EIB Global and EU Unveil €70M Initiative to Empower Armenian MSMEs and Foster Sustainable Growth

(IN BRIEF) EIB Global and the European Commission have launched a €70 million financing package to support Armenian MSMEs. The package includes €58.5 million in loans to three financial institutions—Inecobank, ArmSwissBank, and Farm Credit Armenia—and an €11 million grant to boost access to long-term local currency financing. The initiative, announced during a Yerevan conference on green and inclusive growth, aims to promote entrepreneurship, support women-led and rural businesses, and drive sustainable economic development. It is part of the EU’s broader Economic and Investment Plan for the Eastern Partnership.

(PRESS RELEASE) LUXEMBOURG, 16-Nov-2024 — /EuropaWire/ — A significant financing initiative from EIB Global and the European Commission is set to bolster Armenian micro-, small-, and medium-sized enterprises (MSMEs) with nearly €70 million in funding. This support includes €58.5 million in loans extended by EIB Global to three financial institutions in Armenia and an €11 million grant from the European Commission, aimed at meeting the growing demand for long-term local currency financing.

The announcement was made during a conference in Yerevan focused on fostering green and inclusive growth within Armenia’s private sector. The funds will enhance access to credit for thousands of MSMEs, driving entrepreneurship and economic development across the country.

The EIB Global financing comprises three targeted loans. A €40 million credit line to Inecobank marks the bank’s first direct collaboration with EIB. This initiative is expected to enhance the competitiveness of Armenian MSMEs while aligning with EU-Armenia priorities. Hayk Voskanyan, CEO of Inecobank, highlighted the partnership’s significance, stating, “By expanding access to long-term financing, this initiative equips Armenian SMEs with the tools they need to grow, innovate, and thrive.”

Another €16 million credit line was extended to ArmSwissBank, marking its inaugural partnership with EIB. Part of this funding will support women-led businesses, promoting inclusivity and sustainable growth. CEO Gevorg Machanyan emphasized the bank’s commitment to advancing environmentally friendly practices and supporting diverse businesses.

A third loan of €2.5 million was provided to Farm Credit Armenia, EIB Global’s first partnership with an Armenian microfinance institution. These funds will focus on supporting rural entrepreneurs, including farmers, women, and youth. Armen Gabrielyan, CEO of Farm Credit Armenia, remarked, “This support empowers us to deliver essential funding to agribusinesses, driving tangible, positive change in rural communities.”

EU Ambassador to Armenia, Vassilis Maragos, underscored the initiative’s broader context, stating that it aligns with the EU’s Resilience and Growth Plan, which aims to allocate €270 million between 2024 and 2027. A significant portion of this funding will focus on technology, startups, and new export opportunities, contributing to Armenia’s economic diversification.

This financing package is part of the EU’s Economic and Investment Plan for the Eastern Partnership, aiming to support 30,000 MSMEs in Armenia while fostering sustainable, innovative, and inclusive economic growth.

Background information

About the EIB and EIB Global

The EIB is the long-term financing institution of the European Union, owned by the Member States. It provides long-term finance for sound investments in pursuit of EU policy goals, supporting projects in four priority areas: infrastructure, innovation, climate and environment, and micro-, small and medium-sized enterprises (MSMEs).

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, contributing to the three overarching priorities of the European Union: the European Green Deal, the Global Gateway and jobs, and sustainable and inclusive growth. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society, in close cooperation with other multilateral development banks. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world including the EIB Regional Representation for the South Caucasus covering Armenia.

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SOURCE: European Investment Bank