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- Lending to Armenian companies to increase with a €97 million loan to Inecobank
- Targeted support for displaced Armenians and local companies employing them
- Donor support from the European Union
Companies in Armenia are set to benefit from greater access to finance as the European Bank for Reconstruction and Development (EBRD) extends a €97 million financial package to Inecobank, one of the country’s leading financial institutions. The new financing will help expand lending to local businesses and includes targeted support for displaced Armenians backed by the European Union (EU).
Under this package, Inecobank will receive a €90 million loan to on-lend to private-sector clients. The facility aims to strengthen the role of micro, small and medium-sized enterprises (MSMEs), improving access to finance, boosting their competitiveness and resilience, and encouraging sustainable lending practices. At least 20 per cent of the loan is dedicated to investments in energy efficiency, renewable energy and climate resilience.
In addition, a further €7 million is being provided through the EU4Business-EBRD Credit Line and will be used exclusively to support displaced Armenians, both as entrepreneurs and as employees within local firms. The financing will help these businesses upgrade their technologies and services to meet EU standards, improving workplace safety and resource efficiency, with at least 70 per cent of funds directed towards green technologies.
Eligible sub-borrowers will have access to EU-funded investment grants that can cover up to 35 per cent of their loan amount. The loans are provided in Armenian dram under the EBRD-EU Local Currency programme, enabling companies to invest without exposure to exchange-rate fluctuations, thus helping to strengthen their financial stability.
George Akhalkatsi, the EBRD’s Head of Armenia, said: “Our cooperation with Inecobank and the EU continues to create new opportunities for Armenian firms, enabling their growth, modernisation and long-term resilience. Importantly, the focus on refugees brings an added dimension, providing targeted support to displaced individuals and the local businesses that employ them as they rebuild and engage more actively in Armenia’s economic life.’’
Vassillis Maragos, the EU Ambassador to Armenia, commented: “With this significant financial package to Inecobank, the European Union continues to foster economic inclusion and resilience in Armenia. Our collaboration with the EBRD is pivotal in ensuring that Armenian MSMEs, particularly those involving displaced individuals, gain access to the necessary resources to thrive in a competitive market. This initiative not only boosts entrepreneurship and employment opportunities but also underscores our commitment to a sustainable future through substantial investments in energy efficiency and green technologies, strengthening Armenia's path towards economic integration, diversification and environmental protection.”
Hayk Voskanyan, the Chief Executive Officer of Inecobank, added: “We welcome this facility as our second agreement with the EBRD this year, reflecting the continued trust in Inecobank’s role in Armenia’s financial system. Through our cooperation with the EBRD and the EU, we can further expand long-term financing for businesses and strengthen our contribution to investment, competitiveness and broader economic development.”
This new financing marks another milestone in the long-standing partnership between Inecobank and the EBRD. One of the leading banks in the region, InecoBank offers retail and corporate services to individuals and businesses. The bank also partners the EBRD in a number of strategic initiatives, such as green financing and the promotion of sustainable and innovative private-sector development.
To date, the EBRD has invested more than €2.7 billion in the country across 236 projects.