EBRD lends €135 million to Ardshinbank for small businesses in Armenia

On 26 November, the European Bank for Reconstruction and Development (EBRD) extended a financial package worth €135 million (up to US$ 156 million) to Ardshinbank (ASHB), Armenia’s largest bank. 

The funds will help strengthen the competitiveness of micro, small and medium-sized enterprises (MSMEs), promote green finance and provide targeted support for refugee communities, aiding their integration and employment opportunities.

The financial package is supported by the European Union, the Green Climate Fund (GCF) and CIF. Together, these partners are helping to drive Armenia’s transition to a greener and more inclusive economy. At least one-third of the proceeds will be allocated specifically to eligible green investments, increasing resource efficiency and the generation of renewable energy.

A large part of the package – €110 million – will be used to enhance MSMEs’ competitiveness and promote sustainable lending practices, while also strengthening the resilience of the Armenian financial system. ASHB will also benefit from the EBRD’s innovative unconscious bias training, an interactive module designed to promote fairness and inclusion in lending decisions.

A further €20.0 million will be provided under the Green Economy Financing Facility (GEFF), supported by the GCF and CIF, to fund investment in renewable energy and energy efficiency projects such as solar power, electric vehicles and charging infrastructure.

The remaining €5.0 million will be provided under the EU4Business-EBRD Credit Line, with Ardshinbank becoming the first bank in Armenia to receive a dedicated loan that is aimed exclusively at the economic integration of displaced people. They will be provided with an improved access to finance for local MSMEs which are either owned by refugees or creating jobs for refugees.

Vassillis Maragos, the EU Ambassador to Armenia, said: “By supporting renewable energy investments and promoting fair lending practices, we are not only boosting the competitiveness of Armenian businesses, but also championing a more resilient and equitable future for all citizens.”

Sub-loans will be provided in Armenian dram through the EBRD and EU Local Currency (LCY) programme, helping companies to avoid exchange rate-related risks and plan their investments with greater certainty.

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Press release