EBRD and AraratBank Join Forces to Promote Green Economy and Competitiveness in Armenia
AraratBank and the European Bank for Reconstruction and Development (EBRD) have signed a USD 10 million loan agreement aimed at promoting green initiatives and competitiveness. The program is implemented in partnership with the European Union (EU), Green Climate Fund (GCF), and Climate Investment Funds (CIF).
AraratBank will on-lend the funds to micro, small and medium-sized businesses (MSMEs) with a view to promoting the private sector’s shift towards competitive, low-carbon and climate-resilient practices.
The financing package consists of two main components:
- USD 5 million under the EU4Business-EBRD Credit Line
- USD 5 million through the Green Economy Financing Facility (GEFF)
Under the EU4Business program, borrowers will receive EU grants and complimentary international advisory services. At least 70% of the funding is earmarked for green technologies, while 30% is dedicated to women-led businesses.
The program includes a special component aimed at supporting Armenians displaced between 2020 and 2023. EBRD will provide incentive grants to businesses led by displaced persons as well as companies that provide them with employment opportunities.
Investments eligible for financing under the GEFF program include solar photovoltaic panels, geothermal heat pumps, electric vehicles, and charging infrastructure.
Since the start of cooperation between AraratBank and EBRD in 2007, joint investments in the economy have surpassed USD 100 mln.