For several years now, the European Investment Bank (EIB) has promoted the development of small and medium-sized businesses in Armenia. This support has comprised the provision of medium- to long-term credit facilities to the Central Bank of Armenia (CBA) and to selected partner banks in Armenia, thus enabling these institutions to disburse loans to small and medium-sized businesses.
Building on these activities, in 2015, within the scope of the EU4Business initiative, the EIB established a new programme with the CBA – the “EIB Loans for SMEs” – in order to target the expansion of sustainable lending to small and medium-sized enterprises in the agriculture and tourism sectors in Armenia. In addition, the EIB commissioned a technical assistance (TA) project to support the implementation of the EIB loans, which was extended to the CBA. The project is managed by the German-Armenian Fund (GAF) and financed by the Eastern Partnership Technical Assistance Trust Fund (EPTATF). The programme supports various measures aimed at contributing to the broadening and deepening of the financial sector, supporting SMEs and promoting the development of the private sector, as well as creating and securing employment and income in rural areas in Armenia.
So far, more than 155 projects around the country with a total investment volume of EUR 90 million have already been financed under the “EIB Loans for SMEs” programme. Additionally, more than 1,030 SMEs and mid-caps have benefited from the TA training programme.