YEREVAN, 18 November. /ARKA/. A number of agreements have been signed between Armenia and the European Investment Bank (EIB).

As noted on the bank's website, the global division of the European Investment Bank (EIB Global) has signed a loan of up to EUR 236 million with Armenia to co-finance the construction of the Sisian-Kajaran road, a crucial segment of the North-South transport corridor.

‘This project is set to be a game changer for Armenia and the South Caucasus region, significantly improving transport connectivity between the European Union, the Middle East and Asia,’ the statement said.

‘This transformative project will become a major artery in the region's transport network, giving Armenia better access to global markets and helping shape a more connected, sustainable future,’ said EIB Vice President Teresa Czerwinska, responsible for EIB operations in Armenia.

'This is the largest ever financial agreement between the EIB and Armenia. We are pleased to support this project, which will contribute to sustainable development, increase economic resilience and strengthen ties between Europe, Asia and the Middle East.’

In addition, a grant agreement of more than €10 million, aimed at improving energy efficiency in Yerevan was signed.

'This EU investment grant is intended to complement the EIB's €25 million global loan signed in November 2023. Yerevan City Hall will use the funding to renovate more than 100,000 square metres of public buildings, with a particular focus on reducing energy consumption and CO₂ emissions,’ the EIB said in a statement.

‘This EU grant accelerates the Yerevan Municipality's efforts in this transformative project, moving Armenia towards a greener and more sustainable future,’ Chervinskaya said. ‘The project will not only reduce Yerevan's energy consumption and carbon emissions, but will also significantly improve the quality of life for children, educators, patients and healthcare workers.’

In addition, EIB Global is providing a €58.5 million loan to three Armenian banks to expand lending to micro, small and medium-sized enterprises (MSMEs) in the country.

‘The European Commission is adding a grant of €11 million for the banks to meet the growing demand for long-term local currency financing for Armenian MSMEs,’ EIB said in the statement.

‘We are pleased to strengthen our support to MSMEs in Armenia by co-operating with local financial institutions,’ said Tereza Czerwinska. ‘The EIB is committed to promoting entrepreneurship and inclusive growth in the country by helping businesses overcome barriers to their development. As we address the urgent need for greater access to long-term financing, including in local currency, we are paving the way for a more sustainable and innovative future for Armenia's business ecosystem.’

About the EIB in Armenia

The EIB has been working with Armenia since 2010, operating in the country under the European Neighbourhood Policy's Eastern Partnership programme and other bilateral agreements with the EU. Over the past decade, the Bank has financed a number of projects ranging from infrastructure and small businesses to water and wastewater services. The EIB also finances the construction of cross-border communications to improve road safety and sustainability.

The first energy efficiency project in Yerevan, which is being implemented with a €15 million investment from the EIB and the multi-donor EU Eastern Partnership Energy Efficiency and Environment Policy (E5P) multi-donor fund, continues to improve energy efficiency and earthquake resistance, improving sanitary conditions in 50 kindergartens in Yerevan. -0-