EDFI Management Company to back DEG’s USD 30 million loan to Armeconombank to expand MSME lending in Armenia
EU‑funded MSME Platform Plus guarantee to support agriculture, rural entrepreneurs, and women‑ and youth‑led MSMEs across Armenia
Brussels – 23 April 2026 – EDFI Management Company (EDFI MC) will provide a guarantee under the EU‑funded MSME Platform Plus to back a USD 30 million senior loan from DEG – Deutsche Investitions‑ und Entwicklungsgesellschaft mbH – to Armeconombank OJSC (AEB) in Armenia. The investment will enable AEB to increase access to finance for micro, small and medium‑sized enterprises (MSMEs), with a strong focus on Special MSMEs in agriculture and rural areas, as well as businesses owned or led by women, young professionals aged 18 to 35, and migrants.
Under the transaction, DEG has requested a guarantee from the MSME Platform Plus, managed by EDFI MC corresponding to a guarantee cover of USD 12 million (approximately EUR 10.4 million). By sharing risk with DEG, the guarantee will support AEB’s portfolio growth and enhance financial inclusion by improving access to credit for MSMEs that are traditionally underserved by the financial system. The loan is expected to channel funds specifically towards Special MSMEs led by women, young professionals and migrants, and to strengthen enterprises operating in rural and agricultural areas, where financing gaps remain particularly acute.
By supporting a midsized Armenian bank operating in a high geopolitical risk environment, the transaction will help AEB expand its services to sectors and client segments that face persistent constraints in accessing long-term finance. This is expected to stimulate local job creation, promote investment, foster entrepreneurship and drive income generation across Armenia. The operation will contribute to overall economic development in the country and to the further strengthening of Armenia’s financial sector.
About EDFI Management Company
EDFI Management Company is a fund manager established by the European Development Finance Institutions (DFIs) to manage joint development finance initiatives. The company delivers innovative financing solutions that enable European DFIs and other partners to collaborate and scale their impact in emerging and frontier markets. EDFI Management Company manages a range of blended finance facilities, including ElectriFI, AgriFI, the EDFI MSME Platform, and the European Financing Partners. For more information, visit https://www.edfimc.eu.
About the MSME Platform Plus
The MSME Platform Plus is an EU‑funded guarantee programme under EFSD+ that helps European development finance institutions and their co‑investors expand lending to local financial institutions serving MSMEs in partner countries. By sharing risk on portfolios of loans, the programme aims to address persistent financing constraints for MSMEs and foster inclusive, job‑rich and sustainable private sector development.
About DEG
For more than 60 years, DEG has been financing and advising private enterprises operating in developing and emerging-market countries. With a portfolio of around EUR 11.7 billion DEG is one of the largest private-sector development financiers. As an impact and climate investor it accompanies companies that are addressing transformation and aiming to seize their opportunities. DEG’s customers not only receive financing and advisory solutions tailored to their needs: they can build on DEG’s market knowledge, impact and climate expertise and international network. In this way, DEG, a subsidiary of KfW, contributes to creating more skilled jobs and local income and to improving value creation on the ground in line with the SDGs.
About Armeconombank OJSC
Armeconombank OJSC (AEB) is a mid‑sized universal bank, ranked 7th in Armenia by total assets. AEB has a strong focus on SME lending while offering a wide range of retail and corporate banking services, including loans, deposits, trade finance and payment solutions. The bank operates 54 branches across all regions of Armenia, employs around 900 staff members and maintains an established, positive relationship with DEG.
About EFSD+
The European Fund for Sustainable Development Plus (EFSD+) is the financing arm of the EU’s Global Gateway strategy. It provides guarantees and blended finance instruments to support investments that contribute to sustainable development, particularly in fragile and emerging markets.
About Global Gateway
Global Gateway is the European Union’s strategy to boost smart, clean, and secure connections in digital, energy, and transport sectors, and to strengthen health, education, and research systems across the world. It aims to mobilise up to €300 billion in investments between 2021 and 2027 to support sustainable and trusted partnerships globally.
