On 16 May, the European Bank for Reconstruction and Development (EBRD) and the European Union announced new support for Armenian micro, small and medium-sized enterprises (MSMEs).
The EBRD is providing a $7 million loan to Inecobank for on-lending to Armenian firms, while the EU is complementing this support with grant incentives of up to 15 per cent and free local and international consultancy services, both funded under the EU4Business initiative.
The financing, announced on the margins of the EBRD’s 2024 Annual Meeting and Business Forum in Yerevan, and part of the EU4Business-EBRD Credit Line, will allow borrowers to invest in modern equipment and production upgrades, as well as to enhance product quality and bolster health-and-safety measures.
At least 70 per cent of loans provided to Ineco Bank will be allocated towards funding investments in green technologies to help companies advance environmental practices and resource efficiency.
The EU4Business-EBRD Credit Line, available also in Georgia, Moldova and Ukraine, is a joint financing instrument of the EBRD and the EU, designed to boost the competitiveness and export ambition of local firms.
To date, the EBRD has invested more than €2.1 billion through 211 projects in Armenia.
