EU bank steps up support to SMEs in Armenia as part of EU4Business

Photo: European Union
Photo: European Union

The European Investment Bank (EIB) is lending €50 million to the Central Bank of Armenia to finance projects implemented by small and medium-sized enterprises (SMEs) and mid-caps in the country, particularly in the areas of agri-food processing and tourism.

The loan is being provided in the context of the EU4Business initiative, which is targeted at smaller businesses in the Eastern Partnership countries.

The Central Bank of Armenia will channel the EIB funds to beneficiaries (mainly SMEs) through a range of eligible financial intermediaries, such as local banks and funds.

It is expected that around 25 enterprises will benefit from this loan and 2,060 jobs be sustained. The funding’s focus areas – agri-food processing, tourism and rural development – play a strategic role in terms of the country’s development. In Armenia, some 95% of communities are rural and agriculture accounts for approximately three-quarters of total employment in rural areas of the country.

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Press release