On 12 December, the European Bank for Reconstruction and Development (EBRD) announced a US$ 10 million (€9.5 million) loan to Araratbank to boost competitiveness and green investments.
The funding is provided in partnership with the European Union, the Green Climate Fund (GCF), and Climate Initiative Funds (CIF).
Araratbank will on-lend the funds to micro, small and medium-sized businesses (MSMEs) with a view to promoting the private sector’s shift towards competitive, low-carbon, and climate-resilient practices.
Of the total financing, US$ 5 million will be allocated through the EU4Business-EBRD Credit Line – a joint programme designed to help MSMEs upgrade their technology and services to meet EU standards. Under the EU4Business initiative, borrowers will have access to EU-funded grants and complementary international advisory services. This support enables firms to boost their competitiveness both locally and globally, while adopting robust health and safety standards and environmentally friendly practices. At least 70 per cent of the funding is earmarked for green technology, and 30 per cent is dedicated to on-lending to women-led businesses, promoting greater economic inclusion and female entrepreneurship.
The EBRD is also using the funding to address the needs of Armenians entrepreneurs, displaced between 2020 and 2023, providing them with incentive grants.
The remaining US$ 5 million will be provided through the Green Economy Financing Facility (GEFF), supported by the GCF and the CIF. This portion of the funding will be available for green investments, with a focus on climate adaptation and mitigation technologies. Eligible investments include solar photovoltaic panels, geothermal heat pumps, electric vehicles and charging infrastructure. Borrowers will also benefit from technical assistance and additional investment incentives to support these projects.
