YEREVAN, September 19. /ARKA/. The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are scaling up their support for refugee-led businesses in Armenia while strengthening the country’s broader economic resilience.
EBRD Managing Director for Türkiye and the Caucasus Elisabetta Falcetti and European Commissioner for Enlargement Marta Kos signed an agreement for a new financial package under the Refugee Response Window for Armenia (RRWA) programme at a launch event in Yerevan.
The RRWA programme builds on the success of the EU4Business-EBRD Credit Line, which already provides local small and medium-sized enterprises (SMEs) with long-term funding, technical assistance and incentive grants. It introduces dedicated tools to support refugee-led businesses and SMEs that create employment opportunities for refugees.
In a targeted effort to support people displaced in Armenia between 2020 and 2023, the EU will provide special incentive grants to micro, small and medium-sized enterprises (MSMEs) that are led by or hire displaced individuals, helping to foster sustainable economic integration and long-term community benefits.
The initiative will include:
- dedicated credit lines and portfolio risk-sharing instruments with local partner financial institutions (PFIs) for refugee-led enterprises and refugee-supporting MSMEs
- first-loss risk cover and counter-guarantees to reduce risk for PFIs and the EBRD, enabling broader lending
- capacity building for MSMEs through the EBRD’s Advice for Small Businesses programme
- incentive grants of up to 35 per cent of the loan amount to be provided to eligible MSMEs to reduce investment costs and encourage refugee integration.
In total, up to €44 million in financing is expected to be channelled to beneficiaries. The funding package includes €10.7 million in investment incentives, of which €8 million is being provided by the EU and the remainder being funded from the EBRD Shareholder Special Fund. Five Armenian commercial banks and one leasing company are expected to be involved in the programme and deploy up to €44 million in lending over the next 18 months. Borrowers will receive up to 35 per cent of their loan amount in incentive grants, giving them a much-needed financial cushion when starting their businesses.
The RRWA underscores the EBRD’s and EU’s commitment to ensuring inclusive economic growth and resilience in Armenia, particularly for vulnerable groups. By combining concessional finance, risk-sharing mechanisms and tailored capacity-building assistance, the programme aims to foster the sustainable integration of refugees into the Armenian economy.
Since the start of its operations in Armenia in 1992, the EBRD has invested almost €2.5 billion in 231 projects across the country.-0-
