“ArmSwissBank” CJSC has signed a €20 million guarantee agreement with the European Investment Fund (EIF), marking the first such agreement in Armenia. The bank reported that the new financial instruments aim to boost Armenia’s economic development by supporting small and medium-sized enterprises (SMEs) and women’s entrepreneurship. On this occasion, we spoke with Ara Makaryan, Deputy CEO and Director of Business Development Department at “ArmSwissBank” CJSC.

- ArmSwissBank recently signed a €20 million guarantee agreement with the European Investment Fund (EIF). Why is this a significant step for the bank and Armenia’s economy?

- This collaboration is of great importance to us. Signing an agreement with the European Investment Fund not only opens new doors for our clients but also enhances the credibility of Armenia’s financial system on the international stage. This is one of the first programs of its kind in Armenia, and it enables us to implement innovative solutions to promote the development of SMEs, which is vital for the stabilization and growth of Armenia's economy. It is important to emphasize that ArmSwissBank does not provide mass banking services but is primarily focused on offering corporate and investment banking services to SMEs. This focus has led to the introduction of this instrument in collaboration with the EIF.

The program significantly increases SMEs’ access to financial resources by offering more lenient collateral requirements and longer-term financing. Through this partnership, we can support our clients in implementing larger investment projects without overly complicated processes. Moreover, the tools available to businesses, such as loans, leasing, factoring, and bank guarantees, will become more flexible and efficient. This will not only foster business growth but also strengthen their ability to meet the demands of external markets. All of this has been made possible through the support of the European Union and European Investment Bank.

- Mr Makaryan, the program specifies that at least 20% of the guarantee portfolio should be allocated to supporting women’s entrepreneurship. How does ArmSwissBank plan to achieve this objective?

- We value supporting women’s entrepreneurship financially and socially. We believe that women have great potential to contribute to the development of their communities and the overall economy. Currently, over 30% of ArmSwissBank’s financing is directed toward businesses led by women, and we plan to further develop this direction through several initiatives.

First, we will organize active marketing campaigns to ensure that information about the program’s opportunities reaches not only our existing clients but also beginner women entrepreneurs. Additionally, our team will conduct specialized training programs and seminars aimed at promoting women’s entrepreneurship.

We aim not only to support women-led businesses but also to contribute to the sustainable development of communities, job creation, and equal opportunities in the financial sector.

- What are the main opportunities this program offers to both the investors and the bank?

- First and foremost, this program allows us to expand our portfolio of financial products and introduce another tool aligned with international best practices. The partnership with the European Investment Fund creates an exclusive opportunity to bring in innovative tools that are better tailored to our clients’ needs and requirements.

Moreover, the competitive terms provided under this program, including more flexible financing mechanisms and broad portfolio formation possibilities, enable us to create a higher-quality and more sustainable credit portfolio. This not only strengthens the bank’s position in the market but also helps mitigate risky transactions while simultaneously driving economic growth and development.

Due to the program’s attractiveness, we also anticipate improving our capital adequacy ratios, which are of strategic importance for the bank’s stability and long-term success. The introduction of innovative and competitive products contributes to increased client satisfaction, making ArmSwissBank a preferred partner for business development.

The collaboration with the European Investment Fund not only broadens our financial tools but also enhances our credibility, which is crucial for attracting international investors and strengthening our market presence.

- What are the main terms of the guarantee provided under the program, including the maximum amount and its application features?

- Under the program, the total guarantee amount provided by the European Investment Fund is €20 million. The guarantee is provided for newly created loan portfolios, which means existing loans cannot be included under this program.

The maximum guarantee amount per borrower is set at €5 million, allowing even large businesses and organizations to benefit from the program. The guarantee coverage limit for a single financial instrument ranges from 30% to 80%, increasing access to financing for businesses while reducing risks.

At the same time, the bank is required to meet reporting obligations to ensure the program’s transparency and efficiency.

- What are your plans for the next steps in implementing the program?

- We are committed to actively ensuring the program’s effective implementation. We will expand the partnership framework, develop new financial products, and offer benefits that help our clients strengthen their market positions. By combining innovative solutions with international expertise, we aim to achieve long-term success and make a significant contribution to Armenia’s economic development.