On November 15, EIB Global, a part of the European Investment Bank (EIB), and ArmSwissBank signed a loan agreement totaling €16 million aimed at expanding financial access for small, medium, and micro enterprises (SMEs) in Armenia.

This financing will enable ArmSwissBank to enhance the financial capabilities of businesses, contributing to the growth of business volumes, market expansion, and the creation of new jobs in Armenia. As part of promoting inclusive economic growth, 30% of the loan funds are allocated to women-owned enterprises, supporting the expansion of their operations.

The grant provided by the European Union (EU) will help make loans at an affordable interest rate, contributing to the competitiveness of small businesses in Armenia.

“The collaboration with the EIB will enable ArmSwissBank to support a wide range of businesses, including those led by women. This initiative will help drive economic growth in Armenia while also promoting environmentally friendly practices. Together, ArmSwissBank and EIB Global are committed to fostering innovation and growth in the Armenian business community,” said Chief Executive Officer of ArmSwissBank Gevorg Machanyan.

“We are pleased to step up our support for MSMEs in Armenia, partnering with local financial institutions. The EIB is dedicated to fostering entrepreneurship and inclusive growth in the country, helping businesses overcome barriers to their development. As we address the pressing need to enhance access to long-term finance, including in local currency, we pave the way for a more resilient and innovative future for Armenia’s business ecosystem,” said EIB Vice-President Teresa Czerwińska.

“With this support to the Armenian MSMEs, we are delivering on our commitment to further support Armenian private sector and contribute to addressing the pressing need for access to finance. We will build on these efforts by delivering a total of €270 million under the Resilience and Growth Plan in the period 2024-2027. A significant portion of it will be dedicated to business development, particularly in the tech sector, start-ups and new export opportunities, which will support Armenia’s economic diversification. This assistance is part of the Economic and Investment Plan (EIP) for Armenia which is a comprehensive initiative aimed at fostering economic growth, sustainable development, and prosperity in the country,” Head of the EU Delegation to Armenia, Ambassador Vassilis Maragos said.

It is noted that this partnership will promote inclusive economic growth and at least 30% of credit will be allocated to women-owned businesses.

About the EIB and EIB Global

The EIB is the long-term financing institution of the European Union, owned by the Member States. It provides long-term finance for sound investments in pursuit of EU policy goals, supporting projects in four priority areas: infrastructure, innovation, climate and environment, and micro-, small and medium-sized enterprises (MSMEs).

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, contributing to the three overarching priorities of the European Union: the European Green Deal, the Global Gateway and jobs, and sustainable and inclusive growth. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society, in close cooperation with other multilateral development banks. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world including the EIB Regional Representation for the South Caucasus covering Armenia.

About ArmSwissBank

ArmSwissBank, being a dynamically growing financial institution, expands its operations in the field of corporate and investment banking services, offering both traditional and modern financial solutions accepted in the international banking system. The bank collaborates with several international organizations, including the EBRD, ADB, KFW, EIB, FCI, EDB, IBEC, PCAF, and others.