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ADB Allocates Up to $100 Million to Support Small Businesses in Armenia

Funding will go towards MSME development and "green" projects

The Asian Development Bank and Ameriabank have signed a loan agreement for up to $100 million, aimed at expanding access to finance for micro, small, and medium-sized enterprises in Armenia. The project marks ADB's largest private sector deal in the country.

The majority of the funds – up to 75% – will be allocated to lending to MSMEs across the country. An additional minimum of 25% is earmarked for "green" investments, including projects in renewable energy and energy efficiency. It is also stipulated that at least 10% of the funding will go to women-led businesses.

According to the parties, small and medium-sized businesses account for about 70% of employment and over 65% of Armenia's GDP, but access to finance remains limited. Additionally, ADB will provide technical assistance of up to $125,000 to strengthen banking mechanisms and develop sustainable financial practices. The project aims to stimulate the private sector and support a greener and more inclusive economy in the country.