Armenia Asks EBRD to Tie SME Support to Export Strategy as ADB Eyes PPPs

Armenia is pushing its two largest multilateral lenders to steer more financing toward export diversification and private infrastructure, following back-to-back meetings with the European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB) this week.

EBRD: align SME tools with export strategy

Minister of Economy Gevorg Papoyan met an EBRD delegation led by Elisabetta Falcetti, Managing Director for Turkey and the Caucasus, on September 24, ArmBanks reported. With a view to diversifying exports and reaching new markets, Papoyan proposed better aligning EBRD and EU support instruments for small and medium-sized enterprises with Armenia's export strategy and industrial priorities. The parties agreed to continue joint work.

The EBRD's footprint in Armenia is substantial:

• About €3.2 billion invested across 249 projects since 1992 (as of end-August 2026).
• A current portfolio of around €1.12 billion, 71% of it in the private sector.
• A record €426 million committed across 26 projects in 2025.

ADB: public-private partnerships on the agenda

A day earlier, Deputy Prime Minister Tigran Khachatryan met ADB Country Director Lyaziza Sabyrova. According to ArmBanks, the two sides reviewed ongoing programmes and discussed water resource management, infrastructure, seismic safety in schools, and policy-based budget support. Particular attention was paid to identifying effective public-private partnership (PPP) models. The ADB has provided more than $2 billion to Armenia since 2005.

The export problem behind the request

The push comes as Armenia's trade pattern is shifting. The Central Bank of Armenia has flagged restrictions on exports to Russia as a source of potential oversupply in the domestic market, while the European Parliament has moved to grant duty-free access for around 80% of Armenian exports to the EU. Redirecting small exporters toward new markets requires working capital, certification and trade finance – precisely the kind of products development banks channel through local lenders.

What to watch

• Whether new EBRD credit lines to Armenian banks carry explicit export-linked conditions.
• Any PPP pipeline announcement with the ADB, particularly in water and urban infrastructure.
• The IMF's second review of Armenia's Stand-By Arrangement, which began this month and will frame the fiscal space for co-financing.

For Armenian banks and exporters, closer alignment between multilateral money and trade policy could lower funding costs for firms targeting EU and non-CIS markets.

Further Reading

• EU Parliament Clears Duty-Free Access for 80% of Armenian Exports
• Armenia's Central Bank Raises Rate to 6.75% in First Hike Since 2022

Photo: Unsplash (illustrative)