US$ 10 million EBRD loan package to ArmSwissBank to support competitiveness and green transition
- US$ 10 million EBRD loan package to ArmSwissBank
- On-lending will help local MSMEs boost competitiveness and green transition
- Donor support from European Union
The European Bank for Reconstruction and Development (EBRD) is providing a US$ 10 million financial package to ArmSwissBank in Armenia to finance the private sector’s investments in growth, competitiveness, and greener and more sustainable practices.
ArmSwissBank will receive US $5 million under the EU4Business-EBRD Credit Line, to be on-lent to local micro, small and medium-sized entities (MSMEs) with the potential to increase exports through investments in production upgrades and new greener equipment.
This programme, a flagship initiative of the EBRD and the European Union (EU), helps local companies increase their competitiveness at home and abroad by upgrading their production facilities and processes to EU standards. At least 70 per cent of the loans will go to support the green transition. Borrowers will receive incentive grants and technical advice funded by the European Union under its EU4Business initiative. This is the ninth project signed in Armenia under this programme, opening the door for more local businesses to benefit from the funding in the future.
Read also
The remaining US$ 5 million will further boost access to finance for local MSMEs, the primary source of employment in the private sector and a significant contributor to Armenia’s economy. ArmSwissBank will broaden its reach, including beyond the capital city, in order to offer longer-term finance and attract new clients. The European Union is backing the loan for local firms under its European Fund for Sustainable Development Plus (EFSD+) guarantee scheme.
The EFSD+ financial inclusion programme is designed to empower MSMEs, fostering their competitiveness and growth. By offering strong financial tools and expertise, the programme aims to encourage intermediaries to direct new lending to those businesses that need it the most.
The financial package was signed by EBRD Managing Director for Financial Institutions, Francis Malige, and ArmSwissBank’s Chair of the Management Board and Executive Director, Gevorg Machanyan, at the EBRD’s 2024 Annual Meeting and Business Forum in Yerevan. The EU was represented by Diana Jablonska, Head of Unit for Georgia, Moldova and the Economic Investment Plan at the Directorate-General for Neighbourhood and Enlargement Negotiations, who witnessed the signing.
ArmSwissBank is a longstanding partner of the EBRD. It operates in the corporate and investment banking sectors, offering traditional and innovative financial products.
The EBRD is the leading institutional investor in Armenia. Since it started operations there in 1992, the Bank has invested more than €2.1 billion in 211 projects in the country’s financial, corporate, infrastructure and energy sectors. Of those investments, 92 per cent have been made in the private sector.
