The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up their support for Armenian micro, small and medium-sized enterprises (MSMEs) to help them become more competitive, both domestically and internationally, and to reduce their carbon footprint.
According to the EBRD press service, the EBRD is providing a US$ 7 million loan to Inecobank for on-lending to Armenian firms, while the EU is complementing this support with grant incentives of up to 15 per cent and free local and international consultancy services, both funded under the EU4Business initiative.
Francis Malige, EBRD Managing Director for Financial Institutions, and Hayk Voskanyan, CEO of Inecobank, inked the loan agreement on the margins of the EBRD’s 2024 Annual Meeting and Business Forum in Yerevan. The EU was represented by Diana Jablonska, Head of Unit for Georgia, Moldova and the Economic Investment Plan at the Directorate-General for Neighbourhood and Enlargement Negotiations, who witnessed the signing.
This financing, which is part of the EU4Business-EBRD Credit Line, will allow borrowers to invest in modern equipment and production upgrades, as well as to enhance product quality and bolster health-and-safety measures. At least 70 per cent of loans provided to Ineco Bank will be allocated towards funding investments in green technologies to help companies advance environmental practices and resource efficiency.
The new loan to Inecobank adds to the bank’s strong track record of disbursing US$ 14 million under the credit line since its inception in Armenia in 2021.
The EU4Business-EBRD Credit Line, available also in Georgia, Moldova and Ukraine, is a joint financing instrument of the EBRD and the EU and designed to boost the competitiveness and export ambition of local firms.
The fifth-largest bank in Armenia, Inecobank is a longstanding EBRD partner with a strong portfolio of private-sector funding.
To date, the EBRD has invested more than €2.1 billion through 211 projects in Armenia.
