By the end of 2025, EBRD`s gross investment in  Armenian economy  amounted to 2.8 bln euros

ArmInfoIn 2025, the European Bank for Reconstruction and Development (EBRD) invested  a record 426 million euros in  Armenia's economy across 26 projects. Of these investments, 85% were directed to the private sector, with the aim of fostering entrepreneurship and sustainable growth, according to the Bank's press service.

George Akhalkatsi, EBRD Head of Armenia, said: "The year 2025 marked  the beginning of a new strategic chapter in our partnership with  Armenia. With the launch of the new country strategy and record  operational delivery, we reaffirmed our strong commitment to  supporting Armenia's economy. We expanded our support for the private  sector while creating new opportunities for young people, women and  refugees. These initiatives have played a vital role in strengthening  Armenia's economy, reinforcing its financial system and capital  markets, advancing green projects, improving infrastructure,  fostering refugee integration and, ultimately, enhancing the quality  of life for all citizens."

The EBRD maintained its support for small and medium-sized  enterprises (SMEs), providing a record 322 million euros in credit  lines to 10 partner financial institutions for on lending to  businesses. These funds are designed to boost competitiveness, energy  efficiency, resilience and inclusion, while also supporting refugee  led enterprises. The credit lines were complemented by grants from  donor partners such as the   EU (EU), the    Green Climate Fund (GCF)  and the  Climate Investment Fund (CIF).

The Bank launched the Refugee Response Window Armenia, implemented  jointly with the EU, extending 44 million euros in targeted lending  and 10.7 million euros in incentive grants to refugee led businesses.   This initiative promotes social cohesion and economic integration,  ensuring refugees can contribute to and benefit from Armenia's  growth.

To sustain vital trade flows, the EBRD supported nearly 70 million  euros in trade finance transactions through eight local partner banks  under its Trade Facilitation Programme. The Bank also committed 30  million euros to the development of the Yerevan Customs and Logistics  Centre, modernising Armenia's customs system and reinforcing economic  links. The centre will directly address air pollution challenges in  Yerevan by diverting heavy truck traffic away from the capital. It is  expected to become one of Armenia's first public buildings to achieve  LEED green certification, setting a benchmark for sustainable  construction.  By digitalising customs training, the project will  also expand skills and employment opportunities nationwide, including  for refugees. Last year also saw the launch of a landmark programme:  38 million euros in targeted financing through a local bank to expand  access to finance for youth led enterprises across the country.

Alongside financing, the EBRD delivered 65 advisory projects for  local SMEs. More than 1,000 participants benefited from webinars,  financial literacy training and conferences. Key focus areas included  entrepreneurial skills development, support for women entrepreneurs,  business infrastructure improvements and refugee integration -  demonstrating a comprehensive approach to SME growth.

Complementing its investments, the EBRD continued to engage in policy  dialogue. With support from the Japanese government, the Bank worked  with the Central Bank of Armenia to introduce master documentation  for derivatives and repurchase transactions under Armenian law. This  reform strengthens confidence among domestic market participants,  particularly in the derivatives and repo segments. The Bank, with the  EU's support, launched the Capital Market Support Programme, designed  to deepen Armenia's financial markets, broaden investment  opportunities and enhance the resilience of the country's economic  system.

The Investment Council of Armenia, funded by the UK government's Good  Governance Fund and supported by the EBRD, continued to work with the  Armenian Ministry of Economy on reforms to improve the business  climate, including new investment instruments for small enterprises  and improvements to tax legislation.

By the end of 2025, the cumulative number of EBRD projects in Armenia  had reached 242, with total investments of 2.8 billion euros.  Notably, 85 per cent of these investments were in the private sector,  underscoring the Bank's commitment to fostering entrepreneurship and  sustainable growth.