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Economic development

USD 7 Million Loan Facility to Enhance SME Competitiveness and Regional Integration in Armenia

Strategic Insights

— 1 min read

The Black Sea Trade and Development Bank (BSTDB) has signed a new SME loan facility agreement with the Development and Investments Corporation of Armenia (DICA) to provide a USD 7 million loan for on-lending to local small and medium-sized enterprises (SMEs). This facility aims to boost productivity, improve competitiveness, and expand the export potential of Armenian enterprises, supporting the country's dynamic SME sector. The operation reflects BSTDB's strategic commitment to fostering inclusive economic growth, job creation, and cross-border business ties in line with broader regional development priorities.

Key Takeaways:

  • The USD 7 million loan facility is aimed at supporting local SMEs in Armenia, focusing on capital expenditure and working capital needs.
  • The operation targets the SME sector, a key pillar of Armenia's economy, to boost productivity, improve competitiveness, and expand export potential.
  • The agreement reflects BSTDB's strategic commitment to fostering inclusive economic growth, job creation, and cross-border business ties in the Black Sea region.
  • The facility will allow BSTDB to deepen its impact in Armenia's financial sector and extend access to finance for a wider range of entrepreneurs.
  • The initiative supports the Bank's broader mandate to promote economic resilience and institutional development across the Black Sea region.
  • BSTDB President, Dr. Serhat Kȵksal, commented on the importance of supporting Armenia's SME sector in driving private sector development and deepening economic ties across the Black Sea region.
  • Artur Badalyan, Executive Director of DICA, highlighted the role of the loan agreement in increasing competitiveness, creating jobs, and promoting regional integration in Armenia's economy.

Statistics:

  • The USD 7 million loan facility is aimed at supporting local SMEs in Armenia.
  • The facility will be directed towards increasing the competitiveness of Armenian businesses and contributing to the country's financial sector development.
  • BSTDB has an authorized capital of EUR 3.45 billion.
  • DICA was founded in 2009 as a universal credit organization, used as a vehicle to finance Armenian SMEs and certain investment projects.
  • 100% of DICA shares are owned by the Government of the Republic of Armenia through the Investment Support Center (ISC -- 50.9%) and the Ministry of Finance (49.1%).

Sources:

  • Black Sea Trade and Development Bank Press Release | July 10, 2025
  • Multimedia Investments Ltd, distributed by Contify.com (http://milnz.co.nz/mil-osi-aggregation/) - Copyright 2025

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