The European Investment Bank’s global arm, EIB Global, is lending €12 million to Armenian bank Evocabank to improve access to finance for micro-, small- and medium-sized enterprises (MSMEs) in Armenia.
The EIB credit will enable Evocabank to boost financing for businesses across Armenia so that they can expand operations, create jobs and harness new market opportunities. It will contribute to inclusive economic growth in the country with 20% of the amount to be allocated to women-led businesses. Almost 100 MSMEs are expected to benefit from the operation, sustaining around 1,200 jobs.
The financing will be available in local currency to protect MSMEs against exchange-related risks. The European Union (EU) is supporting the transaction with grant funding, which enables an affordable interest rate on the loan.
The loan is part of EIB Global’s MSME Outreach Initiative for the Southern Caucasus, which will stimulate competition in the banking sector and increase the quality and quantity of finance accessible to small businesses in the region. The operation also contributes to the EU’s objective to support 30,000 MSMEs in Armenia as part of the Economic and Investment Plan for the Eastern Partnership.
