EIB Global and Evocabank join forces with €12 million loan deal to aid small businesses․

The European Investment Bank’s global arm, EIB Global, is joining forces for the first time with Armenian bank Evocabank to improve access to finance for micro-, small- and medium-sized enterprises (MSMEs) in Armenia. EIB Global is lending Evocabank €12 million.

The EIB credit will enable Evocabank to boost financing for businesses across Armenia so they can expand operations, create jobs and harness new market opportunities.

Evocabank said that it will contribute to inclusive economic growth in the country with 20% of the amount to be allocated to women-led businesses. Almost 100 MSMEs are expected to benefit from the operation, sustaining around 1,200 jobs.

The financing will be available in local currency to protect the MSMEs against exchange-related risks. The European Union (EU) is supporting the transaction with grant funding, which enables an affordable interest rate on the loan.

“The loan is part of EIB Global’s MSME Outreach Initiative for the Southern Caucasus, which will stimulate competition in the banking sector and increase the quality and quantity of finance accessible to small businesses in the region. The operation would also contribute to the objective of the EU to support 30,000 MSMEs in Armenia as part of Economic and Investment Plan for the Eastern Partnership,” the news release reads.

“Team Europe is committed to strengthening the competitiveness of small businesses and job creation in Armenia. Thanks to the partnership with Evocabank, this EIB loan will increase MSMEs’ contribution to a sustainable and inclusive economy by providing them with loans in local currency at affordable terms. The agreement will promote financial inclusion by unlocking the financing potential for underserved MSMEs in Armenia,” said Teresa Czerwińska, EIB vice-president responsible for EIB operations in the country.

“We are committed to assuring banks that the loan conditions, bolstered by an EU grant for local currency support, will be highly attractive. As we finalize the Neighbourhood Investment Platform (NIP) grant, this initiative will complement the EIB’s own risk operations, enhancing financial accessibility and support for local businesses,” said Jan Plešinger, Chargé d’Affaires a.i. of the EU Delegation to Armenia.

“We are thrilled to partner with EIB Global on this transformative initiative aimed at strengthening Armenia’s MSME sector. This funds mark a new milestone in our dedication to provide accessible financing to local businesses, enabling them to expand operations, create jobs, and embrace new market opportunities,” said Karen Yeghiazaryan, Chairman of Management Board of Evocabank.