EU Neighbours east. Thousands of businesses in Armenia will find it easier to access credit thanks to a nearly €70 million financing package from the European Commission and the global arm of the European Investment Bank (EIB Global).
EIB Global is lending a total of €58.5 million to three Armenian banks – Inecobank, ArmSwissBank and Farm Credit Armenia – to expand credit for micro-, small and medium-sized enterprises (MSMEs) in the country. The European Commission is adding an €11 million grant for the banks to meet growing demand for long-term local currency financing for Armenian MSMEs.
A €40 million credit line to Inecobank will contribute to the growth and competitiveness of Armenian MSMEs and promote entrepreneurship. A €16 million credit line will enable ArmSwissBank to boost financing for businesses across Armenia, with part of the amount to be allocated to women-led businesses. The third loan of €2.5 million to Farm Credit Armenia will be used to stimulate the development of businesses owned or led by farmers, young people or women entrepreneurs, including in rural areas.
The whole package contributes to the European Union’s goal of supporting 30,000 MSMEs in Armenia and fostering sustainable, innovative and competitive growth as outlined in the EU Economic and Investment Plan for the Eastern Partnership.