Akba Bank is the first among the commercial banks of Armenia to start direct cooperation with the European Investment Bank (EIB), attracting 55 million euros of financial resources from EB Global (the development branch of the EB).
Akba Bank will direct the funds raised to the development of micro, small and medium enterprises in Armenia.
The partnership is based on ENB Global’s commitment to support Armenia’s economic development and boost private sector growth and job creation. Funds raised by ENB Global will be directed to the local private sector, stimulating economic development and investment, and more than 200 SMEs , among which women-led businesses will receive special attention, will take advantage of this opportunity, providing additional jobs as well.
“We are happy to start a partnership with Akba Bank. Our goal is to help build strong and resilient economies that also create jobs. This cooperation will contribute to the growth and competitiveness of Armenian small and medium-sized enterprises, including in the rural areas of the country, and will promote entrepreneurship in accordance with the priorities of the European Union and Armenia,” said Teresa Chervinska, Vice President of the European Investment Bank.
Akba Bank is currently launching the first direct and major cooperation among commercial banks in Armenia with the European Investment Bank, attracting 55 million euros. Akba is one of the leading financiers of small, small, medium and large enterprises throughout Armenia, and the involvement of these funds will allow us to give an additional boost to the development of SMEs. Our primary goal is to contribute to the development of MSMEs, as the latter are considered the driving force of our country’s economy,” said Hakob Andreasyan, Chief Executive Officer of Akba Bank.
“We are determined to assure the banks that the loan terms, strengthened by the EU grant, will be very attractive. Together with the finalization of the IMF grant, this initiative will complement the EIB’s own risk operations, increasing financial accessibility and support for local businesses,” he said. Chargé d’affaires of the EU Delegation in Armenia Ian Pleschinger.
.jpg "In cooperation with the European Investment Bank, Akba Bank will direct 55 million euros to the development of micro, small and medium-sized enterprises")
About the European Investment Bank and EIB Global
The European Investment Bank is a long-term financing institution of the European Union, which belongs to the member states. It provides long-term financing for reliable investments, supporting EU policy objectives in four priority areas: infrastructure, innovation, climate and environment, and SMEs.
EIB Global is a specialized division of the European Investment Bank, which aims to develop international cooperation and the impact of development financing. As part of Team Europe, EIB Global fosters strong, focused partnerships with other development finance institutions and civil society, working closely with other multilateral development banks. EB Global brings the EB Group closer to local people, companies and institutions through offices around the world, including a regional representation in the South Caucasus, which also includes Armenia.
About Akba Bank
Akba Bank is one of the leaders of the banking system of Armenia, the absolute leader in financing the country’s rural sector. After the initial public placement (IPO) of shares, Akba Bank has more than 5,600 shareholders the quantity and quality of services. Akba is represented in all regions of Armenia, has 65 branches, and is considered one of the largest employers in the country and in the financial system one.
The bank is controlled by the Central Bank of Armenia.
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What are the expected long-term benefits of the European Investment Bank’s funding for Armenia’s economy?
Interview Script: Time.news Editor and EIB Expert
Editor: Welcome to Time.news! Today, we have a special guest, an expert from the European Investment Bank, to discuss a momentous development in Armenia’s banking sector. Akba Bank has recently become the first commercial bank in Armenia to partner with the European Investment Bank, securing a substantial 55 million euros in funding from EIB Global. This is a significant step towards bolstering the local economy, especially for micro, small, and medium enterprises. Thank you for joining us!
Expert: Thank you for having me. It’s an exciting time for both Akba Bank and the Armenian economy.
Editor: Absolutely! Let’s dive right in. Can you elaborate on why this partnership is so important for Armenia right now?
Expert: Of course! This partnership is crucial as it represents not only a financial boost but also a commitment to support sustainable economic development in Armenia. The funds will primarily be allocated to micro, small, and medium enterprises, which are vital to stimulating job creation and enhancing private sector resilience. Our focus is not only on urban areas but also on rural regions, ensuring inclusive growth.
Editor: That’s a commendable initiative! We’ve seen that women-led businesses will receive special attention. Why is this aspect particularly important to the EIB?
Expert: Supporting women-led businesses is essential because they are often underrepresented in the business ecosystem. By providing targeted support, we are fostering diverse entrepreneurship, which is key to sustainable economic growth. Women entrepreneurs contribute uniquely to the community, and empowering them can lead to broader socioeconomic benefits.
Editor: Certainly, it’s about equity as much as it is about economics. Now, what can you tell us about the loan terms and how they are structured to benefit local businesses?
Expert: The loan terms offered through this partnership, backed by EU grants, are designed to be very attractive for local SMEs. We’ve worked hard to ensure that these loans are accessible and supportive, addressing the unique challenges businesses face in Armenia. This approach, combined with the ongoing support of the IMF, creates a more favorable lending environment, encouraging investment and growth.
Editor: It sounds like a holistic approach to economic revitalization. Given Akba Bank’s role in this initiative, how do you see them impacting the SME landscape in Armenia?
Expert: Akba Bank is well-positioned to be a driver of growth in the SME sector. They have a strong track record in financing businesses at all levels and are deeply embedded in the local market. With EIB Global’s support, I believe they will catalyze significant advancements in the competitiveness of Armenian SMEs, leading to job creation and economic resilience.
Editor: Those are inspiring insights! Teresa Chervinska, the Vice President of the EIB, mentioned that this cooperation aligns with broader EU priorities. Can you explain how this partnership fits into the EU’s strategy in the region?
Expert: This partnership aligns with the EU’s goal of promoting economic stability and growth in the Eastern Partnership countries, including Armenia. By investing in local businesses and encouraging entrepreneurship, we are supporting sustainable development, enhancing regional cooperation, and contributing to the EU’s overarching objectives of stability, security, and prosperity in the region.
Editor: It seems like a multi-faceted approach bolstering not just the economic but also the social fabric of the country. As we wrap up, what future impact do you envision from this initiative in the coming years?
Expert: I envision a vibrant ecosystem of SMEs flourishing across Armenia. With robust support from EIB Global and Akba Bank, we expect the emergence of innovative businesses that create jobs and drive economic dynamism. This partnership could serve as a model for future collaborations, reinforcing the strong ties between the EU and Armenia.
Editor: Thank you for sharing your valuable insights with us today! This partnership between Akba Bank and the European Investment Bank truly seems like a promising step forward for Armenia’s economy.
Expert: Thank you for having me! I’m excited to see how this initiative unfolds and positively impacts the lives of many in Armenia.
Editor: And thank you to our viewers for tuning in. Stay connected with Time.news for more updates on economic developments and initiatives shaping our world.