- First unfunded risk-sharing instrument signed in Armenia
- Unfunded guarantee will underpin new funding of up to €50 million for MSMEs
- Donor support provided by the European Union
The European Bank for Reconstruction and Development (EBRD) and the European Union are joining forces with Acba bank to boost the availability of funding for Armenian micro, small and medium-sized enterprises (MSMEs).
The EBRD is providing a €25 million unfunded risk-sharing instrument to one of Armenia’s leading banks to unlock new financing for local firms. This guarantee will cover up to 50 per cent of the credit risk associated with €50 million in newly originated financing for the private sector from Acba bank. The EU is supporting this instrument through its European Fund for Sustainable Development Plus (EFSD+) guarantee programme, which enhances financing and investment operations in partner countries outside of Europe.
The guarantee agreement was signed by Hakob Andreasyan, CEO of Acba bank, and EBRD President Odile Renaud-Basso, during the EBRD’s 2024 Annual Meeting and Business Forum in Yerevan.
This is the first time the EBRD has deployed a risk-sharing instrument of this kind in Armenia. It builds on the EBRD’s core commitment to Armenia’s banking system and private sector, while also providing a novel means of responding to unique market demand. The guarantee will further expand financing for local MSMEs, which are critical to the sustainable growth of the Armenian economy. Armenian firms, including agribusinesses, will also be able to benefit from tailored consultancy services to help them grow in export markets.
Acba bank is one of the largest Armenian banks and a longstanding partner of the EBRD, with cooperation between the two spanning two decades and focusing on the MSME segment.
The EBRD is a leading institutional investor in Armenia. The Bank has invested more than €2 billion in 211 projects in the country to date, where it supports private-sector development and the transition to a sustainable, green economy.