EIB Global granting a EUR 105 million loan to Ameriabank to support   Armenian private sector

ArmInfo. The European Investment Bank (EIB) has made its first ever agreement with Ameriabank, providing the bank with 105 million euros in financing-its largest direct loan to a bank in the South Caucasus region. The funds will be used to finance micro, small and medium-sized enterprises (SMEs) in Armenia and green economy  projects.

 The EIB representative noted that  they are delighted to  partner with Ameriabank to strengthen Armenia's private sector and  promote sustainable economic growth. The EIB representative also  reported that the agreement is supplemented by grant assistance from  the European Union, which will allow the Bank to provide loans to  SMEs in national currency.

Ameriabank CFO Hovhannes Toroyan, in turn, emphasized that Ameriabank  is the largest creditor to the Armenian economy: the bank's portfolio  is 1.3 trillion drams, of which 270 billion  is the total SME  portfolio as of the end of 2024. He noted that the Bank serves more  than 50 thousand SMEs throughout Armenia every day, and over 2/3 of  its clients use mobile services, which greatly simplifies joint work.  At the same time, Toroyan noted that the SME portfolio reflects  almost the entire economy of Armenia. "All areas in which SMEs  operate are proportionally represented in our portfolio," said the  CFO of Ameriabank.  Speaking about the agreement with the EIB, he  expressed hope that this cooperation will provide local businesses  with affordable funding, enabling them to reach their full potential  and contribute significantly to Armenia's economic growth. As the  largest lender in the Armenian economy with a solid portfolio in  green and sustainable funding, we are confident in our ability to  foster a  more sustainable and inclusive economic future for  Armenia.". 

The signing ceremony of the loan agreement was also attended by the  head of the EIB representative office in the South Caucasus, Maciej  Czura, and the EU Ambassador to Armenia, Vassilis Maragos.  In  particular, the head of the EIB in the South Caucasus noted that  through cooperation with Ameriabank, the European Investment Bank is  practically doubling the volume of projects in Armenia, which has  already reached about 1 billion euros. He noted that the EIB's work  contributes to the implementation of EU priorities in Armenia,  highlightinh the transport sector, energy, urban infrastructure  development, water sector, education and private sector development  as areas of interest to the Bank. At the same time, Maciej Czura  expressed hope that cooperation with Armenian partners will continue  to develop at an even higher pace. 

EU Ambassador to Armenia Vasilis Maragos noted that " With this  support to Armenian MSMEs, we are delivering on our commitment to  further support Armenian private sector and contribute to addressing  the pressing need for access to finance including in local currency.  This assistance is part of the EIP for Armenia which is a  comprehensive initiative aimed at fostering economic growth,  sustainable development, and prosperity in the country. We will  further build on these efforts by delivering in total ?270 million  under the Resilience and Growth Plan in the period 2024-2027. A large  part of it will be dedicated to business development, targeted at  tech, start-ups and new export opportunities, which will support  Armenia's economic diversification," 

 Maragos noted that the EU and Armenia have a long history of  cooperation, during which the European Union has not only invested in  infrastructure, provided loans and grants to various sectors of the  economy, but also contributed to the security of Armenia. In this  regard, he recalled the recent decision of the EU Council to extend  the mandate of the EU Monitoring Mission in Armenia, which is another  proof of trust in the future of Armenia and its security.  "We intend  to strengthen the economy, and through joint efforts, investments and  lending we will achieve the desired result - strengthening the  welfare of the people of Armenia," the EU Ambassador to Armenia said.