EBRD and EU Sign $20 Million Loan Package With ArmSwissBank for Refugees and Youth

The European Bank for Reconstruction and Development and the European Union signed a $20 million (€17.1 million) loan package with ArmSwissBank to expand finance for micro, small and medium-sized enterprises owned or led by Armenian refugees and young people. The EBRD said the package comprises two loans of $10 million (€8.59 million) each.

How the ArmSwissBank Package Is Split

Francis Malige, the EBRD's Managing Director for Financial Institutions, and Gevorg Machanyan, Chairman of the Management Board and Executive Director of ArmSwissBank, signed the package on the sidelines of the EBRD's 2026 Annual Meeting and Business Forum in Riga.

One $10 million loan is made through the EU4Business-EBRD Credit Line and targets refugee-owned and refugee-led firms, as well as businesses integrating displaced people into their workforces. Eligible borrowers can access EU-funded investment grants of up to 35 per cent of their loan, alongside advisory support. At least 70 per cent of funds are directed towards green technologies, and the facility is delivered under the EBRD-EU Local Currency Programme.

The second $10 million comes under the Youth in Business programme and will enable ArmSwissBank to launch a dedicated product for young entrepreneurs. The programme also provides advisory, mentoring and networking opportunities, and a capacity-building programme will support the bank in adapting its lending practices, backed by EU-funded performance incentives. The loan is backed by first-loss risk coverage from the EU's European Fund for Sustainable Development Plus Financial Inclusion. The EBRD said this is the first transaction between the two institutions under the Youth in Business programme.

Malige said: "These agreements are the result of a strong partnership between the EBRD, ArmSwissBank and the EU." Machanyan said the agreements "will enable us to better serve MSMEs, including young entrepreneurs and those supporting communities affected by displacement."

Earlier EBRD and ArmSwissBank Loan Announcements

The EBRD and EU announced a $20 million loan package to ArmSwissBank on October 21, 2026, according to Request Blocked, comprising two $10 million loans with at least 70 per cent directed to green technologies and EU grants of up to 35 per cent of the loan. A second report on October 28, 2026 described the same package of two $10 million loans for refugee-owned and youth-led MSMEs.

Other EBRD MSME Lending This Month

The EBRD provided a $40 million loan to EFG Holding on November 5, 2026, its first direct facility, to channel funds through EFG Finance subsidiaries to MSMEs in rural Egypt, Request Blocked reported. The EBRD invested PLN 520 million (€122 million) in senior notes backed by VEHIS's auto-lease portfolio on November 5, 2026, with at least 15 per cent for electric vehicles, 35 per cent for women-led SMEs and 25 per cent for young entrepreneurs, Request Blocked reported. The EBRD provided up to $40 million to Credo Bank on October 28, 2026 to expand medium-term financing for Georgia's MSMEs, with at least 45 per cent of proceeds on-lent to women-led businesses, Request Blocked reported.

ArmSwissBank's EBRD Partnership Since 2010

ArmSwissBank has been an EBRD partner since 2010. The EBRD has invested over €3 billion in Armenia across more than 245 projects, 86 per cent of which are in the private sector.