European Bank for Reconstruction and Development and Acba bank have signed a €50 million unfunded portfolio risk-sharing agreement aimed at improving access to finance for businesses in Armenia. The agreement was officially signed in London and is expected to strengthen support for the country’s private sector, particularly small and medium-sized enterprises.
Under the arrangement, the EBRD will cover up to 50 percent of the credit risk on newly issued loans provided by Acba bank. The financing will help Armenian businesses meet working capital needs, expand operations, and improve business performance. Companies receiving loans under the programme will also have access to technical assistance funded by the European Union through the EBRD’s Advice for Small Businesses initiative.
The agreement represents the second collaboration between the EBRD and Acba bank under the bank’s portfolio risk-sharing framework. By sharing part of the lending risk, the initiative allows Acba bank to optimize its capital use and significantly increase financing available to local businesses. The arrangement is expected to mobilize up to twice the facility’s value in private sector lending, creating a broader economic impact across Armenia.
The project is also supported by a €4.5 million guarantee provided by the European Union under the European Fund for Sustainable Development Plus programme. This financial support is designed to reduce risks associated with lending to small businesses and encourage greater financial inclusion and economic development within the country.
The programme focuses on supporting micro, small, and medium-sized enterprises by improving their competitiveness and access to funding. Through partnerships with local financial institutions, the initiative aims to direct financing toward businesses operating in underserved sectors and regions where access to capital remains limited.
Acba bank is one of Armenia’s leading financial institutions and has a long-standing partnership with the EBRD. The bank plays a major role in supporting the country’s agricultural and corporate sectors and operates an extensive branch network across Armenia. It also established Armenia’s first leasing company and partnered with international asset management firms to expand financial services in the country.
EBRD officials stated that strengthening private businesses and improving access to finance remain major priorities for Armenia’s long-term economic growth. The institution believes that innovative financing tools and risk-sharing products can help businesses expand, improve competitiveness, and contribute to economic resilience.
The EBRD has invested nearly €3 billion in Armenia through more than 240 projects, with most investments directed toward private sector development. The new agreement with Acba bank further reinforces the institution’s commitment to supporting economic stability and sustainable business growth in Armenia.
