The European Investment Bank (EIB) and Armenia’s Central Bank have signed an agreement whereby the EIB will loan EUR 50 million to promote small and medium-sized enterprises in Armenia.  

The loan will particularly target the agro-processing and rural sectors, which play an important strategic role in terms of development.

EIB Vice-President Wilhelm Molterer, responsible for EIB lending in Armenia, commented: “This is the first EIB loan extended via a Central Bank in the EU’s Eastern Partnership. We are proud of this innovative cooperation, which underpins our engagement in Armenia.”

Chairman of the Central Bank of Armenia Arthur Javadyan noted, “This loan to SMEs will complement our long-term fruitful cooperation and increase the EIB’s role in the sustainable development of the Armenian economy.”

Even though Armenia’s SMEs account for the majority of businesses in the country, their contribution to GDP, employment, foreign trade and foreign investment remains low.

The provision of affordable targeted loans to facilitate the adoption of modern technologies is a precondition for the development of the Armenian SME sector.

The loan is in line with the objectives of the EIB’s mandate for lending outside the EU, which focuses on the development of the local private sector, in particular support for SMEs, social and economic infrastructure and climate change mitigation and adaptation.