The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU) and ArmSwissBank, has unveiled a $20 million financing package aimed at expanding access to credit for refugees and young entrepreneurs in Armenia. The initiative seeks to support inclusive economic growth by helping underserved businesses secure the funding needed to expand operations, create jobs, and improve competitiveness.
The financing package consists of two separate loans of $10 million each. One loan, provided through the EU4Business-EBRD Credit Line, is designed to support refugee-owned and refugee-led businesses, as well as companies that actively employ and integrate displaced individuals into their workforce. Eligible businesses will also have access to EU-funded investment grants covering up to 35 percent of their loan value, along with specialized advisory services.
The program will enable participating businesses to modernize technologies, improve operational efficiency, and align products and services with European Union standards. A significant portion of the financing will be directed toward environmentally sustainable investments, with at least 70 percent of funds supporting green technologies and resource-efficient solutions.
The second $10 million loan falls under the Youth in Business program and is intended to help young entrepreneurs overcome common financing barriers such as limited credit histories, insufficient collateral, and early-stage business challenges. In addition to financial support, the initiative offers mentoring, advisory services, networking opportunities, and business development assistance to help young business owners grow sustainable enterprises.
To strengthen implementation, ArmSwissBank will receive targeted capacity-building support to enhance its ability to serve young entrepreneurs more effectively. The program also includes performance incentives funded by the European Union to encourage the successful rollout of youth-focused lending products.
The financing is further supported by risk-sharing mechanisms through the European Fund for Sustainable Development Plus (EFSD+), helping reduce lending risks and enabling greater access to finance for underserved market segments.
The initiative reflects a broader commitment by the EBRD and the EU to promote financial inclusion and economic resilience in Armenia. By addressing financing gaps faced by refugees, displaced communities, and young entrepreneurs, the program aims to stimulate business growth, encourage innovation, and strengthen employment opportunities across the country.
ArmSwissBank has partnered with the EBRD since 2010, and the new agreement builds on a long-standing relationship focused on supporting private sector development. To date, the EBRD has invested more than €3 billion in Armenia through over 245 projects, with the majority of investments directed toward private sector growth and economic modernization.
The new financing package is expected to play a key role in supporting entrepreneurship, fostering inclusive growth, and creating new economic opportunities for some of Armenia’s most underserved business communities.
