European Investment Bank allocates 105 mln euros to Armenia's Ameriabank to develop SMEs locally

YEREVAN. Feb 3 (Interfax) - The European Investment Bank (EIB), EIB Global, has provided a loan totaling 105 million euros to Ameriabank, one of Armenia's largest commercial banks, the EIB press service said.

"This is EIB Global's largest direct loan to a bank in the South Caucasus. The financing will support around 400 small businesses and create 15,000 jobs, with at least 20% going toward green investments. Thanks to EU support, part of the financing will be provided in local currency to protect businesses from forex risks," the press service said.

As noted, the operation's goal is to finance investments in micro-, small- and medium-sized enterprises (MSMEs) and mid-caps in Armenia to support their growth and competitiveness, as well as to implement more ecological and sustainable practices.

The European Union is supporting the deal with grant financing, which ensures an affordable interest rate on the loan, the bank said.

As reported, International Finance Corporation (IFC) provided a $200 million loan to Ameriabank on January 14.

"Ameriabank has signed a long-term loan agreement for $200 million with the International Finance Corporation. The funds will be allocated to finance initiatives to prevent climate change, and to support micro-, small- and medium-sized enterprises (MSMEs), including women-owned MSMEs," Ameriabank's press service said at the time.

Ameriabank has been operating since October 1996 and is the largest creditor to the Armenian economy. It is a universal bank providing investment, corporate and retail banking services.

In April 2024, Ameriabank announced that the deal to acquire it by the Bank of Georgia group had been completed and that there was a change in the shareholders. The new owners became Georgia Group PLC (60%) and JSC Bank of Georgia (30%). The share of the European Bank for Reconstruction and Development (EBRD) decreased to 10%. The shareholders had been Imast Group (CY) Limited at 48.82%, the EBRD at 17.71%, Asian Development Bank at 13.91%, ESPS Holding Limited at 12.05%, and Ameriabank.