The European Bank for Reconstruction and Development (EBRD) is boosting its support for micro, small and medium-sized businesses (MSMEs) in Armenia by extending new financing to Armeconombank.
The EBRD’s loan of up to €9.2 million will be provided in Armenian drams under the EBRD’s SME Local Currency Programme and is supported by a 12.5 per cent first-loss risk cover arrangement funded by the same programme.
The announcement was made at the EBRD’s Annual Meeting 2024, which this year took place on 15-16 May in Yerevan.
The EBRD funding will support Armeconombank’s growth strategy, to diversify and expand its services in the MSME segment, focusing on regional clients. The loan will strengthen Armeconombank’s funding base and enable the bank to meet growing demand for long-term local-currency financing for MSMEs.
In addition, the project plans to promote economic inclusion, aiming to allocate 50 per cent of the loan proceeds to on-lending to women-led businesses.
