YEREVAN, November 12. /ARKA/. Armenia will contribute an additional €8.2 million to the authorized capital of the Black Sea Trade and Development Bank (BSTDB). The government approved the corresponding draft decision during its meeting on Thursday.
Armenian Minister of Finance Vahe Hovhannisyan noted that Armenia has been a founding member of the bank since 1998. Over the years, the bank has become one of the country’s key financial partners, providing approximately €400 million in trade and project financing to the private sector.
“Currently, the bank’s active loan portfolio stands at about €1.5 billion. Of this, approximately €120 million is allocated to programs approved for Armenia, with about €84 million in funding actually disbursed,” Hovhannisyan stated during the government meeting.
According to the minister, although Armenia’s share in the bank’s capital is only 1.1%, the volume of financing for programs implemented in the country significantly exceeds this proportional stake.
“This demonstrates that cooperation with the bank holds practical economic significance for Armenia,” he remarked.
Hovhannisyan recalled that in 2024, the bank’s Board of Governors decided to further increase the authorized capital—a move supported by Armenia’s vote.
He explained that the capital increase is intended to expand the bank’s financial capacity, particularly regarding the financing of the real economy, public-private partnership projects, and programs of regional importance. According to the draft resolution, Armenia will acquire an additional 7,136 shares in the bank for a total value of 8,206,400 euros.
“As a result, the total number of shares held by our country will reach 27,136, and the value of its subscribed capital will amount to 31,206,400 euros. Meanwhile, Armenia’s current 1.1% stake in the bank’s capital will remain unchanged,” the minister stated.
Hovhannisyan emphasized that there will be no requirement to pay the entire financial obligation in a single lump sum.
“For 30% of the total amount—approximately 2.46 million euros—it is planned to issue a non-interest-bearing promissory note by the end of 2026, with payments to be made in eight equal installments between 2027 and 2034. This translates to an annual payment of 307,740 euros. The remaining 70% will be payable only upon demand,” he explained.
The minister added that this decision will enable Armenia to fulfill its international commitments, maintain its equity stake and voting power within the bank, and ensure the continuation of their partnership.
According to him, it is particularly important for Armenia that its ongoing engagement with the bank facilitates new investments in the real economy, provides financing for the private sector, and supports the implementation of regional projects.
