Wednesday, July 31 2024 20:10

ArmInfo.Loan of €55 million for Acba bank to support local private sector.

• More than 200 small companies and 6,000 jobs to benefit from operation.
• Credit channelled through EIB’s Armenia MSME Resilience Facility for underserved businesses.

The European Investment Bank’s global arm, EIB Global, is lending Armenia-based Acba bank €55 million to expand financing for micro, small and medium-sized enterprises (MSMEs) as well as mid-caps in the country. The transaction is EIB Global’s first direct credit line to a commercial bank in Armenia.

The loan builds on the strengthened commitment of EIB Global to support economic development and stimulate private-sector growth and job creation in Armenia. EIB Global’s financing will be channelled by Acba bank at affordable rates to the local private sector, bolstering economic development and spurring investments. More than 200 MSMEs, with a focus on women-led businesses, are expected to benefit from the operation, sustaining over 6,000 jobs.

“We are delighted to establish this new partnership with Acba bank,” said Teresa Czerwińska, EIB vice-president responsible operations in Armenia.  “Our aim is to contribute to building stronger and resilient economies that create jobs. This loan will contribute to the growth and competitiveness of Armenian MSMEs, including those in the country's rural areas, and will promote entrepreneurship in line with the priorities of the European Union and Armenia.”

The initiative is part of EIB Global’s Armenia MSME Resilience Facility, which aims to increase access to finance for the private sector in the country. The Facility promotes long-term economic resilience by providing financing to local enterprises through Armenian banks. 

“We are committed to assuring banks that the loan conditions, bolstered by an EU grant for local currency support, will be highly attractive. As we finalize the grant under Neighbourhood Investment Platform (NIP), this initiative will complement the EIB's own risk operations, enhancing financial accessibility and support for local businesses," said Jan Plešinger, Chargé d’Affaires a.i. of the EU Delegation to Armenia.

The operation contributes to the EU’s goal of supporting 30,000 MSMEs for a sustainable, innovative and competitive economy as one of the five pillars for Armenia under the Economic and Investment Plan for the Eastern Partnership.

"Acba bank is currently launching the first direct and large-scale collaboration in Armenia with the European Investment Bank by securing €55 million. Acba is one of the leading funders of small, medium, and large enterprises across Armenia, and this funding will allow us to provide an additional boost to the development of MSMEs. Fostering the development of MSMEs is a primary goal for us, as they are considered the driving force of our country's economy," said Hakob Andreasyan, CEO of Acba bank.

 

Background information

About the EIB and EIB Global

The EIB is the long-term financing institution of the European Union, owned by the Member States. It provides long-term finance for sound investments in pursuit of EU policy goals, supporting projects in four priority areas: infrastructure, innovation, climate and environment, and SMEs.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, contributing to the three overarching priorities of the European Union: the European Green Deal, the Global Gateway and jobs, and sustainable and inclusive growth. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society, in close cooperation with other multilateral development banks. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world including the EIB Regional Representation for the South Caucasus covering Armenia.

About Acba bank

Acba bank is one of the leaders of the Armenian banking system, the absolute leader in financing the country's rural sector. After the initial public offering (IPO) in 2021, Acba bank has more than 5,600 shareholders. Thanks to the implementation of the latest digital solutions and the use of new technologies, the bank continuously develops the quantity and quality of the provided financial services. Acba is represented in all regions of Armenia, has 65 branches, and is considered one of the largest employers in the financial system and the country.