The European Bank for Reconstruction and Development (EBRD) responded to the Covid-19 pandemic in Armenia in 2020 with record investment of EUR 167 million.

The Yerevan Resident Office of the bank has said that the investment was made in the projects in energy, banking and transport and through trade finance support. The bank has helped to address the immediate and longer-term needs of the country’s economy.

“The EBRD team worked to help our clients deal with the impact of the Covid-19 pandemic. Our support included the provision of liquidity and trade finance. We invested in energy and transport infrastructure. Our support to the banking sector fostered companies’ access to finance. In 2021, supporting the recovery is our priority. We work closely with the European Union (EU) in Armenia and we thank our EU partners for this strategically important cooperation in the context of both public- and private-sector projects,” said Dimitri Gvindadze, EBRD Head of the Yerevan Resident Office.

The EBRD stepped up its investment to address immediate needs and to create the foundations for recovery, with a focus on building back better economies in the future. The bank continued to concentrate its support on the private sector, which accounted for more than 90 per cent of total EBRD investment in Armenia in 2020.

In a pioneering project, the EBRD financed the first utility-scale 55 MW solar power plant in Armenia and in the Caucasus. The project will help boost Armenia’s supply of clean energy and reduce its reliance on imported fuels.

Keeping vital trade flows going, the EBRD supported a new record of close to EUR 70 million in trade finance transactions in Armenia, involving eight local partner banks, under its Trade Facilitation Programme.

The EBRD further increased its support for small and medium-sized enterprises (SMEs), with the provision of loans to commercial banks for on-lending to businesses. These loans included Women in Business credit lines.

In the infrastructure sector, the bank funded the reconstruction and modernization of the border-crossing point near the town of Meghri to meet modern safety and security requirements. The project received significant grant support from the European Union.

In addition, the EBRD supported Electric Networks of Armenia, which continues to modernise its electricity distribution network.

Advice and policy engagement

The bank also provided business advice to local SMEs by implementing 80 advisory and consultancy projects (with the help of 70 local consultants), three international advisory activities and 10 market-development activities and training sessions.

The Business Support Office (BSO) launched an innovative initiative in cooperation with the Ministry of Economy, providing free access to webinars for local firms on topics to help them deal with the crisis. Based on recommendations developed by the BSO, the National Assembly adopted a legislative package that improves the legal framework of leasing.