The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are helping improve access to finance for Armenian micro, small and medium-sized sized enterprises (MSMEs).

This collaboration sees the EBRD extending a loan equivalent to US$ 15 million in Armenian drams to help Acba Bank reach more businesses, especially those located in rural areas. The funding will also address the growing demand for longer-term local currency financing.

At the official signing of the loan agreement the EBRD’s First Vice President Jürgen Rigterink said that a strong private sector is among the EBRD’s priorities:

“The funding will support more private businesses in rural areas. Making the funding available in drams will protect borrowers from foreign currency-related risks.”

Lawrence Meredith, Neighbourhood East and Institution Building Director at the European Commission, commented: “As we address the pressing need for extended local currency funding, we pave the way for a more resilient and innovative future for Armenia’s business ecosystem.”

Hakob Andreasyan, CEO of Acba Bank said that the partnership between Acba Bank and the EBRD has continuously expanded over the years through different programmes directed at supporting the Armenian economy, particularly during economic shocks or downturns.

The EBRD has been always innovative in its programmes. We are delighted to join our forces once again with our partners, the EBRD and the EU, to continue to support local MSMEs in terms of their current liquidity needs and long-term investments, especially in rural Armenia.’’

It is noted that the EFSD+ financial inclusion programme is designed to empower MSMEs, fostering their competitiveness and growth. By offering effective financial tools and expertise, the programme aims to drive development and create jobs.