The European Investment Bank (EIB), the lending arm of the European Union, will provide a loan of €70 million to the Central Bank of Armenia to increase access to financing for small and medium-sized enterprises (SMEs) and mid-caps in Armenia.

The CB said that this initiative is part of the EIB’s Armenian Economic Resilience Programme, with backing from the European Fund for Sustainable Development Plus (EFSD+). The programme is designed to facilitate access to financing for businesses in Armenia, contributing to economic growth and resilience.

The funds, channelled through the Central Bank of Armenia, will be directed to eligible companies via commercial banks and universal credit organisations, ensuring a streamlined approach to financing. Like its predecessors, the programme, will be implemented by the German-Armenian Fund, and will support an estimated 1 200 enterprises and sustain 1 500 jobs. Eight partner financial institutions are already confirmed to take part in the programme.

Head of the EU Delegation to Armenia Ambassador Vasillis Maragos noted that this loan reaffirms the EU’s commitment to Armenia’s resilient economic growth: “It is an initiative that decisively contributes to the EU’s Economic and Investment Plan target of mobilising €500 million in investments for Armenia’s private sector and supporting 30 000 SMEs.”

The Deputy Prime-Minister of Armenia Mher Grigoryan, said: “Taking into account the current complicated developments in the region, it is especially critical today to do the utmost to provide with all necessary prerequisites for sustainable and continuous development of the private sector.”

Martin Galstyan, Governor of the Central Bank of Armenia, said that with the new loan facility of €70 million, ambitious targets have been set to support SMEs and mid-caps as they invest in green projects, empower women and promote digitalisation.