EBRD Provides €97M To Inecobank To Boost Armenian Businesses, Support Displaced Armenians, And Fund Green Projects

Companies in Armenia are set to benefit from improved access to finance as the European Bank for Reconstruction and Development (EBRD) provides a €97 million financial package to Inecobank, one of the country’s leading financial institutions. This support aims to expand lending to local businesses and includes targeted assistance for displaced Armenians, with backing from the European Union (EU). Under this financing package, Inecobank will receive a €90 million loan to on-lend to private-sector clients. The facility is designed to support micro, small, and medium-sized enterprises (MSMEs) by enhancing their access to finance, boosting competitiveness, and promoting sustainable lending practices.

At least 20 percent of this funding will be allocated to projects focused on energy efficiency, renewable energy, and climate resilience, helping businesses adopt environmentally responsible practices while strengthening their long-term sustainability. In addition to this, €7 million will be provided through the EU4Business-EBRD Credit Line specifically to support displaced Armenians. This funding is intended to assist them both as entrepreneurs and as employees within local companies. It will enable businesses to upgrade technologies and services to meet EU standards, improve workplace safety, and enhance resource efficiency.

At least 70 percent of these funds will be directed toward investments in green technologies, ensuring that environmentally sustainable practices are at the core of this support. Eligible sub-borrowers will also have access to EU-funded investment grants, which can cover up to 35 percent of their loan amounts. The loans are provided in Armenian dram under the EBRD-EU Local Currency programme, allowing businesses to make investments without exposure to exchange-rate fluctuations and helping to strengthen financial stability.

George Akhalkatsi, Head of the EBRD in Armenia, stated that the partnership with Inecobank and the EU continues to create new opportunities for Armenian companies, enabling growth, modernization, and long-term resilience. He emphasized the importance of including refugees in these initiatives, noting that targeted support helps displaced individuals and the businesses that employ them to rebuild and actively participate in Armenia’s economic life.

Vassillis Maragos, the EU Ambassador to Armenia, noted that the financial package reinforces economic inclusion and resilience in the country. He highlighted that the collaboration between the EU and the EBRD ensures that Armenian MSMEs, particularly those involving displaced persons, have access to necessary resources to thrive in a competitive market. This initiative not only promotes entrepreneurship and job creation but also focuses on sustainable development through investments in energy efficiency and green technologies, supporting Armenia’s economic diversification and environmental protection efforts.

Hayk Voskanyan, Chief Executive Officer of Inecobank, said that the bank welcomes this facility as a second agreement with the EBRD this year, reflecting continued trust in Inecobank’s role in Armenia’s financial system. He added that the cooperation with the EBRD and the EU allows the bank to expand long-term financing options for businesses, strengthening their competitiveness and contributing to broader economic development.

This new financing marks another milestone in the long-standing partnership between Inecobank and the EBRD. Inecobank, a leading bank in Armenia, provides retail and corporate services to individuals and businesses and collaborates with the EBRD on strategic initiatives such as green financing and promoting sustainable private-sector development. To date, the EBRD has invested more than €2.7 billion in Armenia across 236 projects, supporting the country’s economic growth and development.