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The Republic of Armenia will subscribe to an additional 7,136 shares in the Black Sea Trade and Development Bank (BSTDB).
The decision was approved at the Cabinet meeting on Thursday.
Minister of Finance Vahe Hovhannisyan said that Armenia has been one of the bank’s founding members since 1998 and that, over the years, the bank has been one of the country’s important financial partners, providing around 400 million euros in trade and project financing to the private sector.
“Today, the bank’s active loan portfolio stands at around 1.5 billion euros, of which projects approved in Armenia account for around 120 million euros, while actual financing provided amounts to around 84 million euros. Although Armenia’s share in the bank’s capital is only 1.01%, the volume of financing for projects implemented in our country significantly exceeds the relative weight of our participation. This shows that cooperation with the bank has practical and economic significance for Armenia,” Hovhannisyan said.
The minister said that in 2024, the bank’s Board of Governors adopted a decision on another increase in its authorized capital, which Armenia also voted in favor of.
“The capital increase is intended to expand the bank’s financial capacity, particularly in financing the real sector of the economy, public-private partnerships, and projects of regional significance. Armenia will subscribe to an additional 7,136 shares in the bank for a total of 8 million 206 thousand 400 euros. As a result, the total number of shares subscribed by Armenia will reach 27,136, and its subscribed capital will amount to 31 million 206 thousand 400 euros. At the same time, Armenia’s current 1.01% shareholding in the bank’s capital will be maintained,” the Minister of Finance said.
Hovhannisyan emphasized that the full amount for the shares does not have to be paid at once.
“For 30% of the total amount, approximately 2.46 million euros, it is envisaged that an interest-free promissory note will be issued by the end of 2026. Payments will be made in eight equal installments over 2027–2034, meaning that the annual payment will amount to 307,740 euros. The remaining 70% will be callable only upon demand,” he said.
Minister of Finance Vahe Hovhannisyan emphasized that the adopted decision ensures the fulfillment of Armenia’s international commitments, maintains Armenia’s share of participation and voting rights in the bank, and, at the same time, contributes to the continuity of cooperation.