The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), has unlocked a US$ 20 million (€17.1 million) loan package to ArmSwissBank to expand access to finance for micro, small and medium-sized enterprises (MSMEs) owned or led by Armenian refugees and young people. The package, signed on the sidelines of the EBRD’s 2026 Annual Meeting and Business Forum in Riga, comprises two loans of US$ 10 million each, backed by EU-funded grants, risk coverage and technical assistance.
The first US$ 10 million loan, channelled through the EU4Business-EBRD Credit Line, targets refugee-owned and refugee-led firms, as well as businesses integrating displaced people into their workforces. Eligible borrowers can access EU-funded investment grants of up to 35 per cent of their loan, alongside advisory support. At least 70 per cent of funds must be directed towards green technologies. The second US$ 10 million loan, under the Youth in Business programme, enables ArmSwissBank to launch a dedicated product for young entrepreneurs, who often struggle to access finance due to early-stage business profiles and limited financial track records. The programme also provides expert advisory, mentoring and networking opportunities.
The loan is backed by first-loss risk coverage from the EU’s European Fund for Sustainable Development Plus (EFSD+) Financial Inclusion, designed to help partner banks expand lending while managing risk. This is the first transaction between the EBRD and ArmSwissBank under the Youth in Business programme.
Francis Malige, EBRD Managing Director for Financial Institutions, said: “These agreements are the result of a strong partnership between the EBRD, ArmSwissBank and the EU. They reflect our shared commitment to ensuring that the benefits of economic growth reach those who need it most, creating new opportunities for refugees and the next generation of entrepreneurs in Armenia.”
Vassilis Maragos, Head of the EU Delegation to Armenia, commented: “We welcome this EU-backed loan agreement between the EBRD and ArmSwissBank, which will contribute to expanding economic opportunities for underserved businesses in Armenia especially relevant in the context of economic pressures on Armenian businesses. Through a combination of risk sharing and blending instruments, the EU is working with the EBRD to address financing gaps that often prevent underserved firms from growing, innovating and accessing EU markets. By improving access to finance, we are supporting the next generation of entrepreneurs, free trade, job creation and the goals of the EU’s Resilience and Growth Plan for Armenia.”
Gevorg Machanyan, Chairman of the Management Board and Executive Director of ArmSwissBank, noted: “We are pleased to further strengthen our longstanding cooperation with the EBRD through these agreements, which will enable us to better serve MSMEs, including young entrepreneurs and those supporting communities affected by displacement, and expand access to finance where it is most needed.”
ArmSwissBank has been an EBRD partner since 2010. The EBRD has, to date, invested over €3 billion in Armenia across more than 245 projects, 86 per cent of which are in the private sector.
The package directly benefits refugee-owned and youth-led MSMEs in Armenia by easing access to credit, grants and advisory services, with a strong green technology component. ArmSwissBank gains a new lending product and capacity-building support, while the EBRD and EU advance their inclusive growth and resilience objectives in the region. No prior coverage of this specific transaction exists in recent EU Matrix archives.