EBRD and Acba bank enhance private sector support in Armenia
The European Bank for Reconstruction and Development (EBRD) has signed a €50 million unfunded portfolio risk-sharing agreement with Acba bank to facilitate Armenian firms’ access to finance. Under the arrangement, the EBRD will cover up to 50 percent of Acba bank’s credit risk on newly issued sub-loans.
Those loans will support the working capital needs of domestic businesses, helping them to expand and improve their operations. Eligible sub-borrowers will also receive European Union (EU)-funded technical assistance under the EBRD’s Advice for Small Businesses programme.
The agreement was signed in London by Francis Malige, the EBRD’s Managing Director for Financial Institutions, and Hakob Andreasyan, Acba bank’s Chief Executive Officer.
Portfolio risk sharing is one of the EBRD’s core financing frameworks, dedicated to supporting and developing local private companies. The EBRD offers partner banks funded or unfunded risk participation mechanisms in foreign or local currency by co-financing and guaranteeing the partner bank’s loans to eligible companies.
This is the second transaction with Acba Bank under the EBRD’s portfolio risk-sharing framework, building on a successful initial facility.
EBRD will share part of the credit risk on Acba bank’s new loans, enabling the bank to optimise capital use and significantly expand lending to Armenian businesses. Under the arrangement, Acba bank is expected to mobilise up to twice the value of the facility in financing for the private sector, amplifying its impact on economic growth.
The project will benefit from a €4.5 million guarantee provided by the EU under its European Fund for Sustainable Development Plus (EFSD+) to support the local small and medium-sized enterprise sector – a financial tool that mitigates the financial risks associated with lending to small businesses in order to promote economic growth in the country.
The EFSD+ Financial Inclusion in the Neighbourhood programme is designed to empower micro, small and medium-sized enterprises by fostering competitiveness and growth. Through its strong financial tools and expertise, the programme aims to encourage intermediaries to direct new lending towards those businesses that need it most.
Acba bank, a longstanding EBRD partner, is one of the leading providers of corporate and investment banking services in Armenia, especially in the agricultural sector. The bank continuously expands and enhances the scope and quality of its financial services, contributing to Armenia’s economic stability and development. Acba bank is the founder and 100 per cent shareholder of Acba Leasing, the first leasing company in Armenia and, together with Amundi, Europe’s leading asset manager, has established Amundi-Acba Asset Management in Armenia. Acba bank operates in all regions of Armenia, with 66 branches. It has more than 5,000 shareholders.
Francis Malige, EBRD Managing Director, Financial Institutions, said: “We are pleased to sign this new guarantee agreement with Acba bank, supported by our key partner, the European Union. We remain firmly committed to fostering the growth and sustainability of private businesses by improving access to finance for small and medium-sized enterprises – an essential driver of Armenia’s economic development. Through innovative financial instruments, we aim to reach businesses in underserved areas, empowering the private sector to support the country’s long-term development and economic resilience. Bolstering firms’ competitiveness and supporting financial-sector intermediation through risk-sharing products are two of the EBRD’s key priorities in Armenia.”
Hakob Andreasyan, Chief Executive Officer of Acba bank, said: “Acba bank and the EBRD have an extensive history of cooperation, and we continue to grow this partnership based on mutual trust. The agreement signed in London opens up new horizons, particularly for small and medium-sized enterprises. I am pleased that Acba bank continues to advance financial solutions in Armenia that have a real and tangible impact on our economy.”
The EBRD is one of the largest institutional investors in Armenia, having invested almost €3 billion in the country through 243 projects to date, with the majority of that investment going to the private sector.
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EBRD records strong financial year in 2025
11.05.2026.17:16
The European Bank for Reconstruction and Development (EBRD) recorded a strong financial year in 2025, with a net profit of €1.3 billion, following a net profit of €1.7 billion in 2024.
In a year characterised by sustained investment in Ukraine and the launch of operations in sub Saharan Africa and Iraq, the Bank further strengthened its financial position while delivering on strategic priorities across the economies where it invests.
Banking assets totalled €47 billion at end-2025, a 6 per cent increase compared with the previous year.
Banking revenue remained resilient, standing at €2.7 billion and accounting for 70 per cent of total revenue. The banking portfolio generated a net profit of €0.6 billion, which was partly offset by impairment losses, with an expected credit loss charge of €0.14 billion, compared with an expected credit loss release of €0.11 billion in 2024.
Non-performing loans accounted for 8.4 per cent of loan operating assets at end-2025, largely reflecting continued geopolitical tensions. Excluding Ukraine related exposures, the non-performing loan ratio remained broadly stable at 3.1 per cent, the same as in 2024.
Treasury assets totalled €39.5 billion at end-2025, an 11 per cent increase relative to 2024. Treasury activities also performed strongly, contributing €0.2 billion to net profit, broadly in line with 2024.
Shareholders demonstrated ongoing confidence in the Bank in 2025, with a subscription rate of nearly 95 per cent for the EBRD’s €4 billion general capital increase, which had been approved by the Bank’s Board of Governors in 2023.
The Bank’s strong financial performance will enable it to continue reinvesting in projects and clients across its markets, advancing its strategic priorities while supporting sustained growth and resilience.
The Bank continues to be rated triple-A with a stable outlook by S&P Global Ratings, Moody’s and Fitch Ratings.
The EBRD is owned by 77 countries, as well as the EU and the EIB. Since its establishment in 1991, the Bank has invested more than €220 billion in economies on three continents.
