The European Bank for Reconstruction and Development (EBRD) on 11 December announced an extension of a €97 million financial package to Inecobank, one of Armenia’s leading financial institutions.
Under this package, Inecobank will receive a €90 million loan to on-lend to private-sector clients. The facility aims to strengthen the role of micro, small and medium-sized enterprises (MSMEs), improving access to finance, boosting their competitiveness and resilience, and encouraging sustainable lending practices. At least 20 per cent of the loan is dedicated to investments in energy efficiency, renewable energy and climate resilience.
In addition, a further €7 million is being provided through the EU4Business-EBRD Credit Line and will be used exclusively to support displaced Armenians, both as entrepreneurs and as employees within local firms. The financing will help these businesses upgrade their technologies and services to meet EU standards, improving workplace safety and resource efficiency, with at least 70 per cent of funds directed towards green technologies.
Eligible sub-borrowers will have access to EU-funded investment grants that can cover up to 35 per cent of their loan amount. The loans are provided in Armenian dram under the EBRD-EU Local Currency programme, enabling companies to invest without exposure to exchange-rate fluctuations
