The Asian Development Bank (ADB) has approved a $19 million financing package with Armeconombank to help small businesses and households in Armenia access affordable credit, with special focus on women entrepreneurs and green investments, according to a press release. The deal includes a $15 million loan in local currency and $4 million from the Canadian Climate and Nature Fund for the Private Sector in Asia. This marks ADB’s first private sector transaction in Armenian dram since the country joined the bank in 2005.
Small and medium-sized enterprises drive much of Armenia’s economy but struggle to secure loans. The situation is particularly challenging for businesses seeking funds for clean energy equipment, where high upfront costs and slow returns discourage investment.
The blended finance structure allows Armeconombank to offer longer repayment periods and better rates for renewable energy systems and energy-efficiency upgrades.
“By increasing access to local currency financing and supporting sustainable investments, we are helping MSMEs—especially women-led enterprises—invest, grow, and contribute to a more inclusive and resilient economy,” said Luke Fochtman, ADB Deputy Country Director for Armenia.
The bank will also receive technical assistance to strengthen its sustainable finance practices and gender-responsive lending programs.
The Canadian fund, established in 2024 with Can$360 million in support, targets climate and nature-based solutions across Asia and the Pacific while promoting gender equality. This project represents ADB’s first financing commitment in Armenia under three consecutive Canadian climate funds.
Armeconombank, founded in 1991, operates 54 branches across Armenia. ADB has committed more than $2 billion in loans, grants, and technical assistance to the country since 2005.
