EIB and Armenia Sign €100M Deal to Boost SMEs, Jobs, and Green Growth

In a landmark move to support Armenia's private sector and deepen EU-Armenia economic ties, the European Investment Bank's development arm, EIB Global, has signed a €100 million financing agreement with the Central Bank of Armenia (CBA). The initiative is designed to boost access to finance for micro, small and medium-sized enterprises (MSMEs) and mid-sized companies, with a particular focus on regional development, green transition, and gender inclusion.

The loan agreement was formally signed in Yerevan by Martin Galstyan, Governor of the Central Bank of Armenia, and Marion Hoenicke, Head of Division at EIB Global. The operation is backed by the European Fund for Sustainable Development Plus (EFSD+), a flagship instrument under the EU's Global Gateway strategy.

Financing for Inclusive Growth and Sustainability

This new credit line will be channeled through the Central Bank of Armenia and on-lent to eligible businesses through commercial banks and universal credit organizations, overseen by the German-Armenian Fund. It is expected to support approximately 500 enterprises and help sustain around 14,000 jobs across Armenia.

Key inclusivity targets built into the programme include:

• At least 45% of financing allocated to enterprises outside Yerevan, promoting regional economic development.

• At least 30% of funds directed toward businesses that promote gender equality, supporting women entrepreneurs and women-led enterprises.

• At least 40% of financing earmarked for green projects, contributing to climate resilience and environmental sustainability.

"This transaction aims to strengthen Armenia's economic resilience by ensuring reliable funding for small businesses, with a particular focus on women entrepreneurs and green initiatives," said EIB Vice-President Teresa Czerwińska, who oversees the Bank's operations in Armenia.

She also emphasized that this is the fifth loan operation the EIB has undertaken with the Central Bank of Armenia, building on a trusted partnership and reinforcing the EU's commitment to Armenia's long-term growth.

EU's Strategic Commitment to Armenia's Economic Transformation

This financial operation supports Armenia's Resilience and Growth Plan, announced by European Commission President Ursula von der Leyen in April 2024. The plan's second priority — investing in connectivity and businesses — is central to this agreement, as it enables Armenian enterprises to become more competitive, climate-conscious, and integrated into regional value chains.

"Support to Armenia's MSMEs is not an isolated effort — it's at the heart of the EU's Resilience and Growth Plan," said a representative from the European Commission's DG for Neighbourhood East and Turkey (DG ENEST). "This helps build a stronger, more diversified, and future-ready Armenian economy, ultimately bringing Armenia closer to the EU."

EU Ambassador to Armenia Vassilis Maragos echoed the sentiment, stating: "This EIB operation will channel affordable finance to hundreds of Armenian businesses. Its emphasis on regional development, gender equality and green projects reflects shared priorities and delivers practical benefits for people and communities."

Building on a Successful Track Record

The new €100 million facility follows four previous credit lines extended by the EIB to Armenia through the Central Bank, totalling €220 million. These earlier agreements have proven highly successful, with the Armenian Economic Resilience Program alone supporting over 70% of SMEs in the production sector and generating more than 1,450 new jobs.

"Our partnership with the EIB has significantly expanded access to finance for Armenian SMEs," said CBA Governor Martin Galstyan. "This new facility will further strengthen our support for green investments, women's economic participation, and regional business development."

Under the programme, the Central Bank will disburse funds to participating financial institutions that meet the inclusive and sustainability criteria, ensuring streamlined delivery to businesses that align with the project's goals.

Support for Green and Inclusive Private Sector Development

This collaboration marks a step forward in the EU's broader efforts to promote climate-resilient, inclusive private sector growth in Eastern Europe and the South Caucasus. By focusing on underserved enterprises, especially in rural areas and in sectors that contribute to Armenia's green transition, the initiative also supports the implementation of EU Green Deal priorities beyond EU borders.

The project complements Armenia's efforts to build a more robust entrepreneurial ecosystem, reduce regional disparities, and accelerate progress toward the Sustainable Development Goals (SDGs).

A Model for EU-Armenia Development Cooperation

The EIB-CBA loan stands as a model for how development finance, when strategically deployed, can achieve multiple policy objectives — from job creation and SME support to gender equity and climate action.

As the EU continues to deepen its engagement with Armenia, initiatives like this one reinforce shared values and tangible cooperation — building a more resilient, inclusive, and sustainable future for Armenia's people and businesses.