EIB Group and Inecobank strengthen support for Armenian businesses through EU-backed guarantee

This article is published in association with European Investment Bank.

• The EIB Group (EIB and EIF) to provide a partial portfolio guarantee to Inecobank to boost access to finance for micro, small and medium-sized enterprises (MSMEs) in Armenia.
• The initiative is expected to support around 120 Armenian MSMEs and sustain 1,800 jobs.
• The operation is backed by the European Commission under the EU4Business Guarantee Facility.

The European Investment Bank (EIB) and the European Investment Fund (EIF) – jointly the EIB Group – are joining forces with Inecobank to enhance access to finance for Armenian entrepreneurs and small businesses. The EIB Group will provide a partial portfolio guarantee to Inecobank under the EU4Business Guarantee Facility, a programme financially supported by the European Union to promote private sector development in the selected Eastern Partnership countries

The new guarantee will allow Inecobank to extend €30 million financing at more favorable terms to Armenian MSMEs by reducing collateral requirements and interest rates. The guarantee will cover up to 80% of individual MSME loans, with aggregate losses capped at 25% of the portfolio. This risk-sharing mechanism is expected to support around 120 enterprises and sustain 1,800 jobs across Armenia.

The signing ceremony took place on 25 November 2025 in Yerevan, with Inecobank CEO Hayk Voskanyan, Deputy CEO, Chief Corporate Business Officer Artyom Chichyan and EIB representative Luca Ponzellini. Vassilis Maragos, Ambassador of the European Union to Armenia, addressed the event on behalf of the European Union.

EIB Vice-President Teresa Czerwińska,who oversees the Bank’s operations in Armenia, said:

“Behind every loan supported through this guarantee there is a small business owner trying to keep a team together, buy equipment or expand to new markets. By working with Inecobank and the European Union, we’re making sure that access to finance is not a barrier but a bridge – one that helps sustain jobs and strengthens Armenia’s economic resilience.”

EU Ambassador to Armenia Vassillis Maragos commented:

“Through our cooperation with Inecobank, the European Union is helping to turn policy priorities into real economic results. This guarantee will enable more Armenian entrepreneurs to access financing, strengthen their businesses, and support diversification, contributing to a more resilient and competitive economy.”

CEO Inecobank Hayk Voskanyan concluded:

“This partnership highlights Inecobank’s strategic position as a leading force in Armenia’s financial sector. The EU and EIB Group’s confidence in our institution allows us to channel more resources to the country’s most dynamic and job-creating businesses. By offering improved financing conditions for MSMEs, supported by first-loss protection that reduces early-stage risk and expands our flexibility to serve clients, Inecobank continues to shape Armenia’s economic landscape – driving growth, enabling innovation and supporting the prosperity of communities across the country.”

Background information  

EIB  

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. 

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.   

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers.Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. 

High-quality, up-to-date photos of our headquarters for media use are available here.

Inecobank

Inecobank is one of the leading banks in the region, providing a full spectrum of retail and corporate banking services tailored to the needs and interests of individuals and businesses. Over the years, the bank has introduced innovative digital products and services, shaping a new culture of financial services in Armenia. With its strong focus on supporting business development and economic growth, Inecobank is a key financial institution through which the EIB Group and the European Union are helping expand access to finance for Armenian MSMEs.