EBRD lends US$ 40 million to Acba bank for youth-led firms in Armenia

• EBRD unlocks US$ 40 (€38.2) million on-lent to youth-led businesses 

• First dedicated youth financing in Armenia and across the Caucasus

• Donor support from the European Union

The European Bank for Reconstruction and Development (EBRD) is scaling up its support for young entrepreneurs in Armenia with a new loan to Acba bank, one of the country’s leading financial institutions. The facility, totalling US$ 40 (€38.2) million and supported by the European Union (EU), represents the first dedicated youth-in-business financing facility in Armenia and across the Caucasus. It will boost access to finance for youth-led micro, small and medium-sized enterprises (MSMEs), helping young people grow their businesses.

The EU is supporting the loan for youth-led firms through its European Fund for Sustainable Development Plus (EFSD+) programme in the form of first-loss risk cover. 

Through this partnership, Acba bank will expand its outreach to first-time borrowers and young entrepreneurs across Armenia, including in regions outside Yerevan, the capital city. This financing aims to stimulate job creation, encourage innovation and strengthen Armenia’s entrepreneurial ecosystem by supporting young people who often face constraints in accessing finance. 

Sub-borrowers will access loans in Armenian dram, helping them avoid currency risks and plan investments with greater certainty. Furthermore, the young entrepreneurs will benefit from advisory services designed to increase competitiveness, support digitalisation and improve long-term business resilience. 

The EFSD+ financial inclusion programme is designed to empower micro, small and medium-sized enterprises, fostering their competitiveness and growth. By offering strong financial tools and expertise, the programme aims to encourage intermediaries to direct new lending towards those businesses that need it most. 

Since the start of its operations in Armenia in 1992, the EBRD has invested close to €2.6 billion in the country across 232 projects.