EFSE boosts support for women entrepreneurs in Armenia with USD 10 million loan to AraratBank

In a significant move to enhance economic resilience and business growth in Armenia, the European Fund for Southeast Europe (EFSE) has extended a USD 10 million loan facility to AraratBank. This investment, complementing the support from early 2024, aims to empower women entrepreneurs by facilitating access to finance. 

The new funding will enable ARARATBANK to issue over 300 sub-loans with longer maturities, targeting micro, small, and medium-sized enterprises (MSMEs) and especially those that are either majority owned or led by women. This initiative is part of a broader effort to bolster business sustainability and job creation in Armenia, with the potential to support nearly 1,500 jobs and stimulate further investment in the MSME sector amidst ongoing geopolitical challenges. 

Oxana Binzaru, EFSE Regional Director, commented on the partnership: “We are proud to strengthen our collaboration with AraratBank, a long-standing partner committed to fostering inclusive economic growth. This USD 10 million loan is a testament to our shared dedication to enhancing the financial inclusion and empowerment of women entrepreneurs in Armenia, supporting them in overcoming the various challenges they face in the business world.” 

Mher Ananyan, Chairman of the Executive Board of AraratBank noted: "The recent focus of the bank’s policy has been on supporting women entrepreneurs in the best possible way, aiming to bring their business ideas to fruition effectively. The new cooperation with our trusted partner EFSE will further bolster this effort, making the process even more impactful.” 

This strategic investment underscores EFSE’s commitment to driving development impact and supporting Armenia’s economy by empowering a critical segment of the business community.