The European Bank for Reconstruction and Development has signed a €50 million unfunded portfolio risk-sharing agreement with Acba bank to improve access to finance for companies in Armenia. Through this partnership, the EBRD will assume up to 50 percent of the credit risk on new sub-loans issued by Acba bank, allowing the bank to lend more confidently to domestic businesses.
The financing made available through these loans will support the working capital needs of Armenian firms, enabling them to expand, strengthen their operations, and invest in growth. Businesses that qualify for these loans will also receive technical support funded by the European Union as part of the EBRD’s Advice for Small Businesses programme, helping them improve management practices and competitiveness.
The signing ceremony took place in London and was attended by Francis Malige, Managing Director for Financial Institutions at the EBRD, and Hakob Andreasyan, Chief Executive Officer of Acba bank. This agreement is the second collaboration between the two institutions under the EBRD’s portfolio risk-sharing framework, following a successful initial facility.Portfolio risk sharing is a key tool used by the EBRD to support the development of private companies across its regions.
By offering partner banks funded or unfunded mechanisms in local or foreign currency, the EBRD shares part of the risk of lending to eligible companies. This approach encourages local banks to extend more credit to businesses that may otherwise struggle to secure financing.Through the new agreement, Acba bank is expected to significantly expand its lending capacity and mobilise up to twice the value of the facility for the private sector.
This increased flow of credit is expected to contribute to economic growth and job creation in Armenia. The project will also receive support from a €4.5 million guarantee provided by the European Union under the European Fund for Sustainable Development Plus. This guarantee helps mitigate the risks associated with lending to micro, small, and medium-sized enterprises and encourages financial institutions to direct more resources toward them.
The EFSD+ Financial Inclusion in the Neighbourhood programme aims to enhance the growth and competitiveness of small businesses by providing strong financial tools and expertise. It encourages intermediaries, such as banks, to channel new financing toward sectors where it is most needed.Acba bank has been a long-term partner of the EBRD and is recognised as one of Armenia’s major providers of corporate and investment banking services, especially within the agricultural sector.
The bank continues to broaden and upgrade its financial services, contributing to the country’s stability and economic development. It owns Acba Leasing, the first leasing company in Armenia, and jointly operates Amundi-Acba Asset Management with Amundi. Acba bank maintains a presence across all regions of the country through its network of 66 branches and has more than 5,000 shareholders.
Commenting on the agreement, Francis Malige stated that the EBRD remains committed to supporting the growth and sustainability of private businesses in Armenia by improving access to finance, particularly for small and medium-sized enterprises. He emphasised the importance of reaching underserved areas and strengthening the competitiveness of local firms.
Hakob Andreasyan noted the long-standing cooperation between Acba bank and the EBRD and described the agreement as an important step toward creating new opportunities for Armenian small and medium-sized enterprises. He said the bank remains dedicated to advancing financial solutions that have a meaningful impact on the country’s economy.The EBRD is among the largest institutional investors in Armenia and has invested nearly €3 billion across 243 projects to date, with most of its support directed toward private-sector development.
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