The European Bank for Reconstruction and Development (EBRD) invested a record €426 million in Armenia in 2025, supporting 26 projects across multiple sectors of the economy. George Akhalkatsi, EBRD Head of Armenia, said that 2025 marked the start of a new strategic chapter in the Bank’s partnership with the country. With the launch of a new country strategy and record operational delivery, the EBRD reaffirmed its commitment to strengthening Armenia’s economy, expanding private sector support, and creating new opportunities for young people, women, and refugees. According to Akhalkatsi, these initiatives have played a crucial role in reinforcing Armenia’s financial system and capital markets, advancing green projects, improving infrastructure, promoting refugee integration, and ultimately enhancing the quality of life for citizens.
The EBRD maintained strong support for small and medium-sized enterprises (SMEs), providing a record €322 million in credit lines to ten partner financial institutions for on-lending to businesses. These funds aim to enhance competitiveness, energy efficiency, resilience, and inclusion, while also supporting refugee-led enterprises. The credit lines were complemented by grants from donor partners including the European Union, the Green Climate Fund, and the Climate Investment Fund.
In addition, the Bank launched the Refugee Response Window Armenia, implemented jointly with the EU, providing €44 million in targeted lending and €10.7 million in incentive grants to refugee-led businesses. This initiative fosters social cohesion and economic integration, allowing refugees to actively contribute to Armenia’s economic growth. To support trade, the EBRD facilitated nearly €70 million in trade finance transactions through eight local partner banks under its Trade Facilitation Programme.
The Bank also committed €30 million to the development of the Yerevan Customs and Logistics Centre, modernising the country’s customs system and strengthening economic links. The project is expected to reduce air pollution in Yerevan by diverting heavy truck traffic away from the capital and aims to become one of Armenia’s first public buildings to achieve LEED green certification, setting a benchmark for sustainable construction. By digitalising customs training, the project will also expand skills and employment opportunities nationwide, including for refugees.
In 2025, the EBRD also launched a €38 million programme through a local bank to expand access to finance for youth-led enterprises across Armenia. Complementing financing efforts, the Bank implemented 65 advisory projects for local SMEs, benefiting more than 1,000 participants through webinars, financial literacy training, and conferences. Key areas of focus included developing entrepreneurial skills, supporting women entrepreneurs, improving business infrastructure, and promoting refugee integration, reflecting a comprehensive approach to SME growth.
The EBRD continued its engagement in policy dialogue as well. With support from the Japanese government, the Bank worked with the Central Bank of Armenia to introduce master documentation for derivatives and repurchase transactions under Armenian law, strengthening confidence in domestic financial markets, particularly in derivatives and repo segments. In partnership with the EU, the EBRD also launched the Capital Market Support Programme to deepen Armenia’s financial markets, broaden investment opportunities, and enhance economic resilience.
Additionally, the Investment Council of Armenia, funded by the UK government’s Good Governance Fund and supported by the EBRD, collaborated with the Ministry of Economy to implement reforms aimed at improving the business climate. These efforts included the creation of new investment instruments for small enterprises and updates to tax legislation. By the end of 2025, the cumulative number of EBRD projects in Armenia reached 242, with total investments of €2.8 billion. Notably, 85 per cent of these investments were directed to the private sector, highlighting the Bank’s ongoing commitment to fostering entrepreneurship, inclusive growth, and sustainable development in Armenia.
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