Search
Search
- €135 million loan to Ardshinbank to boost MSME lending and green investments
- Targeted support for displaced Armenians and the businesses that employ them
- Backed by the EU, GCF and CIF
The European Bank for Reconstruction and Development (EBRD) is extending a financial package worth €135 million (up to US$ 156 million) to Ardshinbank (ASHB), Armenia’s largest bank, to boost local businesses’ access to finance. The funds will help strengthen the competitiveness of micro, small and medium-sized enterprises (MSMEs), promote green finance and provide targeted support for refugee communities, aiding their integration and employment opportunities.
The financial package is supported by the European Union (EU), the Green Climate Fund (GCF) and CIF. Together, these partners are helping to drive Armenia’s transition to a greener and more inclusive economy. At least one-third of the proceeds will be allocated specifically to eligible green investments, increasing resource efficiency and the generation of renewable energy.
A large part of the package – €110 million – will be used to enhance MSMEs’ competitiveness and promote sustainable lending practices, while also strengthening the resilience of the Armenian financial system. ASHB will also benefit from the EBRD’s innovative unconscious bias training, an interactive module designed to promote fairness and inclusion in lending decisions.
A further €20.0 million will be provided under the Green Economy Financing Facility (GEFF), supported by the GCF and CIF, to fund investment in renewable energy and energy efficiency projects such as solar power, electric vehicles and charging infrastructure.
The remaining €5.0 million will be provided under the EU4Business-EBRD Credit Line, with Ardshinbank becoming the first bank in Armenia to receive a dedicated loan that is aimed exclusively at the economic integration of displaced people by improving access to finance for local MSMEs which are either owned by refugees or creating jobs for refugees.
The financing will help these businesses to modernise their operations and upgrade their facilities, strengthening entrepreneurship among displaced people and supporting sustainable economic integration.
Eligible sub-borrowers will benefit from EU-funded investment grants worth up to 35 per cent of individual loan amounts. Sub-loans will be provided in Armenian dram through the EBRD and EU Local Currency (LCY) programme, helping companies to avoid exchange rate-related risks and plan their investments with greater certainty.
George Akhalkatsi, the EBRD’s Head of Armenia, said: “This new financing with Ardshinbank strengthens our longstanding support for Armenian MSMEs, helping them invest, grow and modernise. For the first time, we are adding a component dedicated exclusively to refugees, ensuring that displaced people and the businesses employing them can access new opportunities, making the private sector more sustainable and inclusive.”
Vassillis Maragos, the EU Ambassador to Armenia, commented: “Through this partnership with Ardshinbank and the EBRD, the EU reaffirms its commitment to fostering sustainable and inclusive growth in Armenia. This financial package is a crucial step towards empowering local entrepreneurs, particularly those from refugee communities, to thrive in a green economy. By supporting renewable energy investments and promoting fair lending practices, we are not only boosting the competitiveness of Armenian businesses, but also championing a more resilient and equitable future for all citizens.”
Artak Ananyan, the CEO of Ardshinbank, concluded: “Our strong, lasting partnership with the EBRD reflects a shared strategic vision and mutual trust aimed at advancing the country’s key economic sectors. This financing will contribute to enhancing the competitiveness of the bank’s financial services, as well as strengthening our ability to respond to our clients’ evolving and growing needs.”
ASHB is a longstanding partner of the EBRD with a strong focus on MSMEs. With Armenia’s largest branch network and around 580,000 clients, the bank continues to play a leading role in supporting private-sector development.
Since the start of its operations in Armenia in 1992, the EBRD has invested more than €2.5 billion in the country across 232 projects.