Armenia: EIB Global and Evocabank join forces with €12 million loan deal to aid small businesses

• Almost 100 businesses in Armenia to benefit from operation, sustaining around 1,200 jobs.
• Partnership contributes to inclusive economic growth with 20% to be allocated to women-led businesses.
• Operation in local currency supported by EU grant.

The European Investment Bank’s global arm, EIB Global, is joining forces for the first time with Armenian bank Evocabank to improve access to finance for micro-, small- and medium-sized enterprises (MSMEs) in Armenia. EIB Global is lending Evocabank €12 million.

The EIB credit will enable Evocabank to boost financing for businesses across Armenia so they can expand operations, create jobs and harness new market opportunities. It will contribute to inclusive economic growth in the country with 20% of the amount to be allocated to women-led businesses. Almost 100 MSMEs are expected to benefit from the operation, sustaining around 1,200 jobs.

The financing will be available in local currency to protect the MSMEs against exchange-related risks. The European Union (EU) is supporting the transaction with grant funding, which enables an affordable interest rate on the loan.

The loan is part of EIB Global’s MSME Outreach Initiative for the Southern Caucasus, which will stimulate competition in the banking sector and increase the quality and quantity of finance accessible to small businesses in the region. The operation would also contribute to the objective of the EU to support 30,000 MSMEs in Armenia as part of Economic and Investment Plan for the Eastern Partnership.

“Team Europe is committed to strengthening the competitiveness of small businesses and job creation in Armenia,” said Teresa Czerwińska, EIB vice-president responsible for EIB operations in the country. “Thanks to the partnership with Evocabank, this EIB loan will increase MSMEs’ contribution to a sustainable and inclusive economy by providing them with loans in local currency at affordable terms. The agreement will promote financial inclusion by unlocking the financing potential for underserved MSMEs in Armenia.”

"We are committed to assuring banks that the loan conditions, bolstered by an EU grant for local currency support, will be highly attractive. As we finalize the Neighbourhood Investment Platform (NIP) grant, this initiative will complement the EIB's own risk operations, enhancing financial accessibility and support for local businesses," said Jan Plešinger, Chargé d’Affaires a.i. of the EU Delegation to Armenia.

Karen Yeghiazaryan, Chairman of Management Board of Evocabank said: "We are thrilled to partner with EIB Global on this transformative initiative aimed at strengthening Armenia's MSME sector. This €12 million fund marks a new milestone in our dedication to provide accessible financing to local businesses, enabling them to expand operations, create jobs, and embrace new market opportunities. A noteworthy aspect of this funding is our commitment to allocate 20% of the funds to women-led businesses, fostering inclusive economic growth. With the support of the EU grant, this financing will be provided in local currency, excluding currency risk for MSMEs and promoting financial stability. We are excited about the prospects this collaboration brings to bolster our economy and ensure our continuous support for entrepreneurial community in Armenia."

Background information

About the EIB and EIB Global

The EIB is the long-term financing institution of the European Union, owned by the Member States. It provides long-term finance for sound investments in pursuit of EU policy goals, supporting projects in four priority areas: infrastructure, innovation, climate and environment, and SMEs.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, contributing to the three overarching priorities of the European Union: the European Green Deal, the Global Gateway and jobs, and sustainable and inclusive growth. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society, in close cooperation with other multilateral development banks. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world including the EIB Regional Representation for the South Caucasus covering Armenia.

About Evocabank

Founded in 1990, Evocabank is the first registered commercial bank in Armenia with over 34 years of experience in the banking market. The bank is headquartered in Yerevan, Armenia and has 13 branches in Yerevan and regions.

Evocabank provides inclusive financial services to individuals, MSMEs, and larger businesses. The bank is aimed at delivering financial services with extensive application of the latest technologies in a fast, simple and convenient way, operating in a mobile-first format. Focused on innovative digital approach Evocabank is one of the fastest growing banks in Armenia. The bank has received a number of international awards including “The Best SME Bank of Armenia” and “The Best Digital Bank of Armenia” awards by Global Finance Magazine.