Acba bank, in collaboration with the European Bank for Reconstruction and Development (EBRD), will provide 50 million euros to the financing and development of SMEs in Armenia.

Within the framework of cooperation, the EBRD is introducing a new financial tool in Armenia. For the first time in the country, the EBRD will share the risk of loan repayments provided by the financial institution. Specifically, the EBRD is willing to shoulder up to 50% of the financial risks associated with the 50 million euros allocated by Acba bank for the support and growth of SMEs. This partnership is expected to enable a broader scope of financial assistance to SMEs in Armenia.

EBRD President Odile Renaud-Basso highlighted that Acba bank is the first partner through which EBRD is initiating this project from Mongolia to Europe.

In addition, businesses operating in Armenia receiving financing within the framework of this cooperation will also have the opportunity to use special consulting services that will help them develop in foreign markets.

"Acba bank has a 25-year history of collaboration with EBRD. Today, we have signed an agreement that allows us to offer loans following our standard procedures while sharing the risk with EBRD at 50%. This will give the bank the opportunity to conduct a more extended credit policy, from which SMEs will also benefit," said Hakob Andreasyan, Chief Executive Officer at Acba bank OJSC.

"Today we signed a cooperation agreement with our esteemed partner Acba bank. The agreement focuses on a unique product aimed at strengthening capital, increasing financing for local SMEs and facilitating local currency financing for them. This collaboration will not only benefit Acba bank but also have a positive impact on rural areas and SMEs. In fact, that is the main purpose of this product. As you know, It is in line with EBRD's mission: to promote SME financing in the region" said George Orlov, responsible for Central Asia and the Caucasus region at EBRD.

The agreement was signed during the annual business conference of the European Bank for Reconstruction and Development, which brings together senior EBRD officials, representatives of the financial world and business leaders under one roof to discuss and solve global financial problems.

Acba bank is one of the leaders of the Armenian banking system, the absolute leader in financing the rural sector. Acba bank and the European Bank for Reconstruction and Development have been cooperating since 2003 and have a history of cooperation of more than 20 years.

To date, the European Bank for Reconstruction and Development has invested more than 2 billion euros in 207 projects in Armenia.