$20 million package brings finance and skills to Armenia’s underserved entrepreneurs.

• EBRD unlocks $20 million to broaden access to finance for refugees and young entrepreneurs in Armenia

• Backed by EU-funded grants, risk coverage and technical assistance

• Part of the EBRD’s broader commitment to inclusive growth

The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), is providing a $20 million loan package to ArmSwissBank to expand access to finance for Armenian refugee and youth-owned and led micro, small, and medium-sized enterprises (MSMEs).

The package was signed by Francis Malige, the EBRD’s Managing Director for Financial Institutions, and Gevorg Machanyan, Chairman of the Management Board and Executive Director of ArmSwissBank, on the sidelines of the EBRD’s 2026 Annual Meeting and Business Forum in Riga.

A $10 million loan under the EU4Business-EBRD Credit Line targets refugee-owned and refugee-led firms, as well as businesses actively integrating displaced people into their workforces. Eligible borrowers can access EU-funded investment grants of up to 35 per cent of their loan, alongside tailored advisory support to strengthen operations and develop inclusive HR practices.

The financing will help these businesses upgrade their technologies and services to meet EU standards, improving workplace safety and resource efficiency, with at least 70 per cent of funds directed towards green technologies. Delivered under the EBRD-EU Local Currency Programme, the facility extends ArmSwissBank’s reach to start-up businesses that may lack sufficient capital, collateral or credit history.

A further $10 million under the Youth in Business programme will enable ArmSwissBank to launch a dedicated product for young entrepreneurs, who often struggle to access finance due to early-stage business profiles and limited financial track records.

Alongside lending, the programme provides young business owners with expert advisory, mentoring, networking opportunities and a wide range of non-financial services aimed at helping them navigate challenges, create jobs and grow successful businesses.

A tailored capacity-building programme will support ArmSwissBank in adapting its lending practices to better serve this segment, supported by EU-funded performance incentives linked to the successful roll-out of its youth lending offer.

The loan is also backed by first-loss risk coverage provided by the EU’s European Fund for Sustainable Development Plus (EFSD+) Financial Inclusion, designed to help partner banks expand lending while managing risk and optimising capital use. This is the first transaction between EBRD and ArmSwissBank under the Youth in Business programme.

Gevorg Machanyan, Chairman of the Management Board and Executive Director of ArmSwissBank, noted: “We are pleased to further strengthen our longstanding cooperation with the EBRD through these agreements, which will enable us to better serve SMEs, including young entrepreneurs and those supporting communities affected by displacement, and expand access to finance where it is most needed.”

Francis Malige, EBRD’s Managing Director for Financial Institutions, said: “These agreements are the result of a strong partnership between the EBRD, ArmswissBank and the EU. They reflect our shared commitment to ensuring that the benefits of economic growth reach those who need it most, creating new opportunities for refugees and the next generation of entrepreneurs in Armenia”.

Vassilis Maragos, Head of EU Delegation to Armenia, said: “We welcome this EU-backed loan agreement between the EBRD and ArmSwissBank, which will contribute to expanding economic opportunities for underserved businesses in Armenia, especially relevant in the context of economic pressures on Armenian businesses. Through a combination of risk sharing and blending instruments, the European Union is working with the EBRD to address financing gaps that often prevent underserved firms from growing, innovating and accessing EU markets. By improving access to finance, we are supporting the next generation of entrepreneurs, free trade, fostering job creation, and advancing the goals of the EU’s Resilience and Growth Plan for Armenia.”

ArmSwissBank has been an EBRD partner since 2010. The EBRD has to date invested over €3 billion in Armenia across more than 245 projects, 86 per cent of which are in the private sector.