EIB Group and Inecobank strengthen support for Armenian businesses through EU-backed guarantee

The European Investment Bank (EIB) and the European Investment Fund (EIF) – jointly the EIB Group – announced on 25 November a partial portfolio guarantee to Armenian Inecobank to boost access to finance for micro, small and medium-sized enterprises (MSMEs) in Armenia.

The EIB Group will provide the guarantee to Inecobank under the EU4Business Guarantee Facility, a programme financially supported by the European Union to promote private sector development in selected Eastern Partnership countries.

“Behind every loan supported through this guarantee there is a small business owner trying to keep a team together, buy equipment or expand to new markets,” said EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Armenia. “By working with Inecobank and the European Union, we’re making sure that access to finance is not a barrier but a bridge – one that helps sustain jobs and strengthens Armenia’s economic resilience.”

The new guarantee will allow Inecobank to extend €30 million financing at more favorable terms to Armenian MSMEs by reducing collateral requirements and interest rates. 

The guarantee will cover up to 80% of individual MSME loans, with aggregate losses capped at 25% of the portfolio. This risk-sharing mechanism is expected to support around 120 enterprises and sustain 1,800 jobs across Armenia.

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Press release