Over AMD 12 Billion Provided by AraratBank in 2024 to Support the MSME Sector

June 27 is declared as Micro, Small and Medium-Sized Enterprise Day. In our country, the MSME sector contributes substantively to both the overall growth of the economy and the development of its separate sectors. The RA banks are the primary source of SME financing: in 2024 alone, the volume of loans provided to SMEs amounted to around AMD 1.6 trillion.

Assuming a leadership role in SME financing is reflected in AraratBank’s vision. The amount of loans provided by AraratBank’s SME Lending Division during 2024 exceeded AMD 12 billion, of which more than AMD 2 billion were allocated to women entrepreneurs, and over AMD 1 billion - to young entrepreneurs.

Lending to micro, small and medium-sized businesses has consistently remained a core strategic priority for the bank. Over the past three years, the sector has experienced a steady growth, both in terms of portfolio volumes and the number of customers served by the bank.

• The volume of the MSME loan portfolio in 2022 amounted to AMD 21.1 billion, in 2023 – to AMD 25.3 billion (a 20% growth), and in 2024 – to AMD 26.4 billion, ensuring additional growth of 4.5% compared to the previous year.
• The number of MSME customers in 2022 was 1,061, while in 2023, it amounted to 1,286 (a 21.2% increase), and in 2024 - to 1,342, which is 4.4% higher than in the previous year.

“Currently, about 33.6% of our MSME customers are women entrepreneurs, which is an important business inclusiveness and equal opportunity indicator. Under the partnership with international institutions, we have introduced special loan products aimed at promoting women and youth entrepreneurship," notes Aram Baghdasaryan, Head of the SME Lending Division at AraratBank. 

A flexible collateral policy exists within these projects, which allows a wider range of businesses to have access to financing.

In addition, AraratBank is actively developing its green loan services, seeking to foster environmentally responsible businesses and promote ecological investments.

Last December, AraratBank and the European Bank for Reconstruction and Development (EBRD) signed a $10 million loan facility agreement aimed at promoting green initiatives and competitiveness.

Under the EU4Business program, borrowers will receive EU-funded grants and complimentary international advisory services. At least 70% of the funding is earmarked for green technologies, while 30% is dedicated to women-led businesses.

Congratulations to all the customers who have put their trust in us! 

We are happy with our contribution to your business success and, on the whole, with our joined efforts towards the economic development of our country.

AraratBank is regulated by the Central Bank of Armenia.