The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union, unlocked a US$ 20 million (€17.1 million) loan package to ArmSwissBank to expand access to finance for micro, small and medium-sized enterprises (MSMEs) owned or led by Armenian refugees and young people.
The package comprises two loans of US$ 10 million (€8.59 million).
One of the US$ 10 million loans is being made through the EU4Business-EBRD Credit Line, and targets refugee-owned and refugee-led firms, and businesses actively integrating displaced people into their workforces. Eligible borrowers can access EU-funded investment grants of up to 35 per cent of their loan, alongside tailored advisory support to strengthen operations and develop inclusive human resource practices.
The financing will help these businesses to 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. Delivered under the EBRD-EU Local Currency Programme, the facility extends ArmSwissBank’s reach to start-ups that may lack capital, collateral or credit history.
A further US$ 10 million comes under the Youth in Business programme and will enable ArmSwissBank to launch a dedicated product for young entrepreneurs, who often struggle to access finance due to early-stage business profiles and limited financial track records.
Alongside lending, the programme provides young business owners with expert advisory, mentoring and networking opportunities, along with a wide range of non-financial services to help them navigate challenges, create jobs and grow successful businesses.
The loan is also backed by first-loss risk coverage from the EU’s European Fund for Sustainable Development Plus (EFSD+) Financial Inclusion, designed to help partner banks expand lending while managing risk and optimising capital use. This is the first transaction between the EBRD and ArmSwissBank under the Youth in Business programme.
Vassilis Maragos, Head of the EU Delegation to Armenia, said the EU-backed loan agreement would contribute to expanding economic opportunities for underserved businesses in Armenia “especially relevant in the context of economic pressures on Armenian businesses”.
“Through a combination of risk sharing and blending instruments, the EU is working with the EBRD to address financing gaps that often prevent underserved firms from growing, innovating and accessing EU markets. By improving access to finance, we are supporting the next generation of entrepreneurs, free trade, job creation and the goals of the EU’s Resilience and Growth Plan for Armenia,” Maragos said.
ArmSwissBank has been an EBRD partner since 2010. The EBRD has, to date, invested over €3 billion in Armenia across more than 245 projects, 86 per cent of which are in the private sector.
