EIB Global, the international arm of the European Investment Bank, has formalized a strategic cooperation agreement with Farm Credit Armenia UCO CC (FCA) to stimulate the growth of businesses owned and managed by farmers, youth, and women entrepreneurs. As part of this initiative, EIB Global will provide a €2.5 million loan to FCA, with most of the funds directed towards the 2X Challenge, promoting investments that are women-owned, managed, and employed. This initiative aligns with the European Union’s goal of supporting 30,000 micro, small, and medium-sized enterprises (MSMEs) in Armenia, fostering sustainable and competitive growth as outlined in the EU Economic and Investment Plan for the Eastern Partnership.

“We are pleased to step up our support for MSMEs in Armenia together with our partner financial institutions,” said Teresa Czerwińska, EIB vice-president responsible for operations in the country. “The EIB is dedicated to fostering entrepreneurship and inclusive growth in Armenia, helping businesses overcome barriers to their development. As we address the pressing need to enhance access to long-term finance, including in local currency, we pave the way for a more resilient and innovative future for Armenia’s business ecosystem.”

Armen Gabrielyan, Chief Executive Officer of Farm Credit Armenia, emphasized the significance of the collaboration: “We are thrilled to partner with the European Investment Bank. This significant support will empower us to extend enhanced services to farmers and agribusinesses, providing them with the essential funding needed to thrive and contribute to community development. Together, we aim to fortify Armenia's agricultural sector and foster tangible, positive change in our communities.” Head of the EU Delegation to Armenia, Ambassador Vassilis Maragos, said: “With this support to the Armenian MSMEs we are delivering on our commitment to further support Armenian private sector and contribute to addressing the pressing need for access to finance. We will further build on these efforts by delivering in total €270 million under the Resilience and Growth Plan in the period 2024-2027. A large part of it will be dedicated to business development, targeted at tech, start-ups and new export opportunities, which will support Armenia’s economic diversification. This assistance is part of the Economic and Investment Plan (EIP) for Armenia which is a comprehensive initiative aimed at fostering economic growth, sustainable development, and prosperity in the country. “ 

About EIB and EIB Global: The European Investment Bank (EIB) is the long-term financing institution of the European Union, owned by its Member States. It provides long-term finance for sound investments that align with EU policy goals, supporting projects in infrastructure, innovation, climate and environment, and micro-, small and medium-sized enterprises (MSMEs).. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, contributing to the three overarching priorities of the European Union: the European Green Deal, the Global Gateway and jobs, and sustainable and inclusive growth. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society, in close cooperation with other multilateral development banks. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world including the EIB Regional Representation for the South Caucasus covering Armenia. 

About Farm Credit Armenia: Farm Credit Armenia (FCA) is the only cooperative credit institution operating in Armenia, focusing exclusively on providing micro and small loans to the real sector of the economy in the country’s regions. Founded in 2007 by 57 farmers, FCA now has over 11,000 members and shareholders. With headquarters in Yerevan and 10 regional branches, FCA’s mission is to enhance the productivity and sustainability of agricultural businesses by offering affordable loans and leasing. FCA currently holds equity amounting to 2.6 billion AMD (around 6.2 million EUR) and assets totaling 17.5 billion AMD (around 51.7 million EUR).