The European Bank for Reconstruction and Development (EBRD) is providing a $10 million financial package to ArmSwissBank in Armenia to finance the private sector’s investments in growth, competitiveness, and greener and more sustainable practices.
The package was announced on the margins of the EBRD Annual Meeting and Business Forum held in Armenia.
ArmSwissBank will receive $5 million under the EU4Business-EBRD Credit Line, to be on-lent to local micro, small and medium-sized entities (MSMEs) with the potential to increase exports through investments in production upgrades and new greener equipment.
This programme, a flagship initiative of the EBRD and the European Union, helps local companies to increase their competitiveness at home and abroad by upgrading their production facilities and processes to EU standards.
The remaining $5 million will further boost access to finance for local MSMEs, the primary source of employment in the private sector and a significant contributor to Armenia’s economy. ArmSwissBank will broaden its reach, including beyond the capital city, in order to offer longer-term finance and attract new clients.
The European Union is backing the loan for local firms under its European Fund for Sustainable Development Plus (EFSD+) guarantee scheme, which is designed to empower MSMEs, fostering their competitiveness and growth.
