The EIB Group, consisting of the European Investment Bank and the European Investment Fund, is partnering with Inecobank to expand access to finance for micro, small and medium-sized enterprises in Armenia. Through the EU4Business Guarantee Facility, backed by the European Commission, the EIB Group will provide a partial portfolio guarantee that is expected to benefit around 120 businesses and help sustain 1,800 jobs.
With this new guarantee, Inecobank will be able to offer €30 million in financing to Armenian MSMEs on more favorable terms. The guarantee will cover up to 80% of individual loans, with total losses capped at 25% of the portfolio. By reducing collateral requirements and lowering interest rates, the initiative aims to support entrepreneurs, strengthen business operations, and promote economic resilience across the country.
The signing ceremony took place on 25 November 2025 in Yerevan, with representatives from Inecobank, the EIB Group, and the European Union in attendance. Leaders emphasized that the partnership will help ensure financing becomes more accessible, enabling businesses to invest, grow and maintain employment. They also highlighted how the initiative will support diversification and contribute to a more competitive Armenian economy.
The European Investment Bank is the long-term lending arm of the European Union, financing projects that support climate action, innovation, digitalisation, social infrastructure, and overall economic resilience. In 2024, the EIB Group committed nearly €89 billion to high-impact projects aligned with EU policy priorities, while also significantly supporting climate-related investments and Europe’s energy security.
Inecobank, a major player in Armenia’s financial sector, offers a wide range of services for individuals and businesses and is known for advancing digital financial solutions. Its role in this partnership reinforces its position as a key channel for expanding financial opportunities for Armenian MSMEs and supporting broader economic development.
