Armenia to allocate approximately $2 million to increase  EBRD`s  authorized capital

ArmInfo.  On October 23, during its regular meeting, the government approved Armenia's  subscription instrument for increasing the authorized capital of the  European Bank for Reconstruction and Development (EBRD).

As stated in the explanatory note to the document, the EBRD was  established in 1991. The Bank's shareholders include 77 countries, as  well as the European Union and the European Investment Bank. Since  its inception, the Bank has invested in over 7,500 projects in  approximately 40 countries, totaling ?210 billion. The Bank's  investments aim to facilitate the transition to open market economies  and promote the development of private and entrepreneurial  initiatives in beneficiary countries.

The Republic of Armenia joined the EBRD on April 28, 1992. Since  then, the Bank has participated in financing  231 projects in  Armenia, totaling EUR 2,491 million, of which EUR 605 million is for  ongoing projects. The private sector investments account for 51% of  the Bank's portfolio, with operating assets amounting to EUR 258  million and 60 active transactions. The Bank's main areas of  cooperation include the financial sector, energy, and other  infrastructure projects.

Armenia is also a donor to the EBRD (in 2015, Armenia signed a EUR 1  million investment agreement with the Eastern Europe Energy  Efficiency and Environment Partnership (E5P) Fund).  It is noted  that, in accordance with Resolution No. 265 "On the Increase of the  Authorized Capital and its Contributions," adopted by the Bank's  Board of Governors, the process of increasing the EBRD's authorized  capital by EUR 4 billion is currently underway. The capital increase  ensures the Bank's continued support for beneficiary economies in  overcoming the challenges of the transition period, and will also  help the Bank address broader geopolitical tensions and the long-term  impacts of climate change.  The Republic of Armenia's current stake  in the Bank's authorized capital is 0.05%, and its paid-in capital is  EUR 14.9 million.  

The Republic of Armenia has been invited to subscribe to an  additional 201 shares (with a total value of EUR 2,010,000), which  will proportionally increase or at least maintain the Republic of  Armenia's voting power (in the event of non-subscription to the  capital increase, if all other members of the Bank subscribe, the  Republic of Armenia's voting power will decrease to 0.04%). 

It is also worth noting that during the Bank's Annual Meeting and  Business Forum in London on May 13- 15 2025, the Minister of Finance  of the Republic of Armenia expressed the country's willingness to  participate in the process of increasing the Bank's authorized  capital. Given the bank's significant role as a key partner in  Armenia's development, the recent strengthening of collaboration  following the EBRD Annual Meeting and Business Forum  in Yerevan on  May 14-16 2024,  which led to a record level of Bank investment in  Armenia, the new share subscription is seen as an important step to  ensure continuity in the restoration of effective collaboration  between  Armenia and the Bank.