Nearly 100 Armenian Businesses to Benefit from EIB and Evocabank Partnership, Sustaining Around 1,200 Jobs

Photo credit: EIB

(IN BRIEF) The European Investment Bank’s (EIB) global arm, EIB Global, has partnered with Evocabank to improve financial access for micro-, small-, and medium-sized enterprises (MSMEs) in Armenia. EIB Global is providing a €12 million loan to Evocabank, which will support nearly 100 MSMEs and sustain around 1,200 jobs. The initiative, backed by an EU grant, will offer local currency financing, protecting MSMEs from exchange rate risks. Additionally, 20% of the funds will be allocated to women-led businesses, promoting inclusive economic growth. This partnership aims to enhance competition in the banking sector and aligns with the EU’s goal to support 30,000 MSMEs in Armenia under the Economic and Investment Plan for the Eastern Partnership.

(PRESS RELEASE)  LUXEMBOURG, 1-Aug-2024 — /EuropaWire/ — The European Investment Bank‘s (EIB) global arm, EIB Global, has partnered for the first time with Evocabank to enhance financial access for micro-, small-, and medium-sized enterprises (MSMEs) in Armenia. EIB Global is providing Evocabank with a €12 million loan to support this initiative.

This loan will empower Evocabank to offer increased financing to businesses across Armenia, aiding their expansion, job creation, and the exploration of new market opportunities. Notably, 20% of the loan amount will be directed towards women-led businesses, promoting inclusive economic growth. Approximately 100 MSMEs are expected to benefit, sustaining around 1,200 jobs.

The financing will be provided in local currency, shielding MSMEs from exchange rate risks. The European Union (EU) supports this transaction with grant funding, enabling an affordable interest rate on the loan.

This loan is part of EIB Global’s MSME Outreach Initiative for the Southern Caucasus, which aims to boost competition in the banking sector and enhance the quality and quantity of finance available to small businesses in the region. The operation aligns with the EU’s objective to support 30,000 MSMEs in Armenia under the Economic and Investment Plan for the Eastern Partnership.

“Team Europe is dedicated to enhancing the competitiveness of small businesses and job creation in Armenia,” said Teresa Czerwińska, EIB Vice-President responsible for operations in the country. “Thanks to our partnership with Evocabank, this EIB loan will boost MSMEs’ contributions to a sustainable and inclusive economy by providing loans in local currency at favorable terms. This agreement will promote financial inclusion by unlocking the financing potential for underserved MSMEs in Armenia.”

Jan Plešinger, Chargé d’Affaires a.i. of the EU Delegation to Armenia, added, “We assure banks that the loan conditions, supported by an EU grant for local currency assistance, will be highly attractive. As we finalize the Neighbourhood Investment Platform (NIP) grant, this initiative will complement the EIB’s risk operations, enhancing financial accessibility and support for local businesses.”

Karen Yeghiazaryan, Chairman of Management Board of Evocabank, commented, “We are excited to collaborate with EIB Global on this transformative initiative aimed at strengthening Armenia’s MSME sector. This €12 million fund marks a new milestone in our commitment to provide accessible financing to local businesses, enabling them to expand, create jobs, and embrace new market opportunities. We are particularly proud to allocate 20% of the funds to women-led businesses, fostering inclusive economic growth. With EU grant support, this financing will be offered in local currency, mitigating currency risk for MSMEs and promoting financial stability. We are eager to see the positive impact this collaboration will have on our economy and the entrepreneurial community in Armenia.”

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 SMEs.

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.

About Evocabank

Founded in 1990, Evocabank is the first registered commercial bank in Armenia with over 34 years of experience in the banking market. The bank is headquartered in Yerevan, Armenia and has 13 branches in Yerevan and regions.

Evocabank provides inclusive financial services to individuals, MSMEs, and larger businesses. The bank is aimed at delivering financial services with extensive application of the latest technologies in a fast, simple and convenient way, operating in a mobile-first format. Focused on innovative digital approach Evocabank is one of the fastest growing banks in Armenia. The bank has received a number of international awards including “The Best SME Bank of Armenia” and “The Best Digital Bank of Armenia” awards by Global Finance Magazine.

Media contact:

Begum Iman
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+352 4379 – 85212

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SOURCE: European Investment Bank