ArmInfo. Armenia will participate in the Black Sea Trade and Development Bank's share capital replenishment program. The RA Government approved this initiative of the RA Ministry of Finance at its November 12 meeting.
In his speech, Finance Minister Vahe Hovhannisyan noted that
Armenia has been one of the Bank's founders since 1998. During this period, this financial institution became a significant partner for the country, providing approximately €400 million in loans to the private sector.
Hovhannisyan noted that the Bank's current loan portfolio amounts to approximately €1.5 billion, of which €120 million has been provided to Armenia through approved programs, while actual funds received amount to €84 million.
The minister noted that despite Armenia's share in the Bank's authorized capital being only 1.1%, the volume of projects financed in the country significantly exceeds the state's shareholding. This, Hovhannisyan continued, means that cooperation with the Bank is of significant economic importance for Armenia. He added that in 2024, the Bank's governors adopted a shareholder capital replenishment program, which provides for phased contributions from participating countries from 2027 to 2034. Armenia voted in favor of this decision. The increase in share capital is aimed at increasing the Bank's capabilities, particularly in financing projects in the real sector of the economy, public-private partnerships, and regional cooperation programs.
As part of the project, Armenia will subscribe to 7,136 shares of the Bank for a total of EUR 8.206 million. As a result, the Republic will control 27,136 shares of the financial institution, worth EUR 31.206 million. At the same time, 1.1% of the Bank's subscribed capital will be retained. Repayments will be made in stages. By the end of 2026, shares will be issued for an interest-free loan in the amount of EUR 2.46 million, with repayments to be made in eight equal installments from 2027 to 2034, meaning annual payments will amount to just over EUR 300,000. The remaining 70% will be replenished only if needed.
In this regard, Deputy Prime Minister Mher Grigoryan, who chaired the government meeting, noted that the Black Sea Trade and Development Bank is a good partner for Armenia, but from a strategic perspective, it is crucial to finance projects in the national currency, the dram.
As a reminder, in May 2024, the Bank's Board of Governors approved a decision to increase the subscribed capital by EUR 817 million (to EUR 3.1 billion) to implement its long-term strategy for 2021-2030. The paid-in portion of the new capital (30% of the subscription, or approximately EUR 245 million) will be contributed by shareholder states in eight equal annual tranches, beginning in 2027. The remaining 70% will constitute callable capital. The capital increase will allow the bank to expand lending to the real sector and small and medium-sized businesses (SMEs) in participating countries.
In 2026 alone, the bank signed several agreements with Armenian financial institutions, including IDBank, Armeconombank, and Ameriabank, totaling over 40 million dollars and euros to support local entrepreneurs.
