European cooperation for the benefit of SMEs

The EIB is the European Union's long-term financing institution owned by the member states. Thanks to its top rating (AAA) on the capital markets, it provides long-term financing for reliable investments, supporting EU policy objectives in four priority sectors: infrastructure, innovation, climate and environment, and SMEs.

EIB Global is a specialized unit of the European Investment Bank that aims to enhance international partnerships and the impact of development financing, contributing to the implementation of the European Union's three overarching priorities: The European Green Deal, Global Gateways and jobs, as well as sustainable and inclusive economic growth. As part of Team Europe, EIB Global promotes the development of strong, targeted partnerships with other financial institutions and civil society, working closely with other multilateral development banks.

What is the objective of EIB financing?

The primary objective of EIB financing is to support SMEs by creating favorable conditions for their development and expansion. An EIB loan can be used to finance all investments and costs that are made in the context of SME development, in particular:

• Tangible investments. purchase, renovation or extension of tangible assets:
• Intangible investments. particularly the expenditure involved in R&D, purchase of process licenses and software
• Medium and long-term working capital requirements needed for the operational activity of the SME

What will EIB financing bring for your business?

• You can receive beneficial interest rates or longer tenors compared to standard business lending conditions.
• You can negotiate the term or repayment frequency of the loan to suit the circumstances and cash-flow requirements of your business.
• It allows you to invest significantly in your business without adversely affecting your cash-flow or liquidity.

One of the prominent examples of EIB financing is Evocabank․ On behalf of EIB Global, the Bank was able to attract EUR 12 million in credit funds to support the development of small businesses. Financial assets were provided in the local currency, AMD, eliminating the risk of foreign exchange fluctuations for SMEs and contributing to financial stability.

The EIB loan facilities will enable Evocabank to expand the financing of enterprises in Armenia, contributing to the increase in the volume of business activities, creating new jobs and new sales opportunities.  

Thanks to the financing:

• About 100 small enterprises will benefit from the program, providing about 1,200 jobs.
• There will be inclusive economic growth, because 20% of the loan funds will be given to women-owned businesses.