EBRD lends more than €38 million to Acba bank for youth-led firms in Armenia

The European Bank for Reconstruction and Development (EBRD) is scaling up its support for young entrepreneurs in Armenia with a new loan to Acba bank, one of the country’s leading financial institutions, the EBRD announced today.

The facility, which totals €38.2 million and is supported by the European Union, is the first dedicated financing facility for young entrepreneurs in the Caucasus region. It will boost access to finance for youth-led micro, small and medium-sized enterprises (MSMEs), helping young people to grow their businesses.

Acba bank will expand its outreach to young entrepreneurs and other first-time borrowers across Armenia, including in regions outside the capital Yerevan. This financing aims to stimulate job creation, encourage innovation and strengthen Armenia’s entrepreneurial ecosystem by supporting young people, who often face constraints in accessing finance.

Sub-borrowers will access loans in Armenian dram, helping them to avoid currency risks and plan investments with greater certainty. These young entrepreneurs will also benefit from advisory services designed to increase competitiveness, support digitalisation, and improve the long-term resilience of their businesses.

The EU is supporting this loan for youth-led firms by providing first-loss risk cover through its European Fund for Sustainable Development Plus (EFSD+) Financial Inclusion in the Neighbourhood programme. The programme is designed to empower MSMEs, fostering their competitiveness and growth. 

Since the start of its operations in Armenia in 1992, the EBRD has invested more than €2.7 billion in the country across 236 projects.

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Press release