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The European Investment Bank (EIB Global) has made its first ever agreement with Ameriabank. The EIB will provide the bank with €105 million in financing — its largest direct loan to a bank in the South Caucasus region. The aim of the operation is to finance investments in micro, small, and medium-sized enterprises (MSMEs) and mid-caps in Armenia, with the aim of supporting their growth, competitiveness and adoption of greener and more sustainable practices. This initiative underscores EIB Global’s commitment to fostering economic development, supporting private-sector growth, and creating sustainable jobs in Armenia.
The financing will enable Ameriabank to offer affordable loans to local businesses. The operation is expected to benefit approximately 400 MSMEs and sustain over 15 000 jobs in the Armenian economy. At least 20% of the loan will be directed towards green investments, contributing to Armenia’s transition to a more sustainable and resilient economy.
“We are delighted to partner with Ameriabank to strengthen Armenia’s private sector and promote sustainable economic growth,” said EIB Vice-President Teresa Czerwińska, who oversees EIB operations in Armenia. “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.”
Part of the financing will be provided in local currency to protect MSMEs against currency risk. The European Union is supporting the operation with grant funding, which will help ensure the loan’s interest rate remains affordable. This operation will help the European Union in its ambition to support 30 000 MSMEs for a sustainable, innovative and competitive economy, as one of the five pillars for Armenia set out in the Economic and Investment Plan for the Eastern Partnership.
“With this support to the Armenian MSMEs, we are delivering on our commitment to further support Armenian private sector and contribute to addressing the pressing need for access to finance including in local currency. This assistance is part of the European Investment Plan (EIP) for Armenia which is a comprehensive initiative aimed at fostering economic growth, sustainable development, and prosperity in the country. We will further build on these efforts by delivering in total €270 million under the Resilience and Growth Plan in the period 2024-2027. A large part of it will be dedicated to business development, targeted at tech, start-ups and new export opportunities, which will support Armenia’s economic diversification,” said Head of the EU Delegation to Armenia, Ambassador Vassilis Maragos.
The funds will reach underserved businesses via Ameriabank’s extensive network, enabling them to invest in growth, improve competitiveness and adopt environmentally sustainable practices.
Ameriabank Chief Financial Officer Hovhannes Toroyan said, “We are pleased to partner with the European Investment Bank (EIB Global) to reaffirm our commitment to supporting micro, small, and medium-sized enterprises (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 the Armenian economy 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.”