Yerevan (TDI): The Asian Development Bank has signed a $15 million financing deal with Yerevan-based Converse Bank, directing funds toward small businesses, women-owned enterprises, and sustainable lending in a country where the financing gap for small firms tops $2 billion.
The package, announced on Friday, combines a $13 million ADB loan with a $2 million contribution from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), a trust fund managed by ADB and backed by Can$360 million from the Government of Canada.
Of the $13 million, $11 million will be channeled to micro, small, and medium-sized enterprises, with at least 20% of that earmarked for women-owned businesses.
The remaining $2 million, paired with the CANPA contribution, will support sustainable lending that delivers measurable natural hazard mitigation outcomes for both MSMEs and households.
The deal targets a structural weakness in Armenia’s economy. MSMEs account for nearly 70% of employment and more than 65% of gross domestic product, yet a financing gap exceeding $2 billion continues to restrict their growth.
By funneling longer-term capital through Converse Bank, the ADB hopes to loosen that constraint and enable businesses to expand and hire.
ADB Armenia Country Director Lyaziza Sabyrova said the project would help expand access to finance for MSMEs including women-owned businesses while accelerating sustainable investments, adding that longer-term financing and stronger institutional capacity would support private sector growth, job creation, and the country’s transition to a more resilient economy.
Despite strong potential, sustainable lending remains limited in Armenia, and the project is expected to contribute to reduced greenhouse gas emissions and increased adoption of energy-efficient solutions by supporting investments in green technologies and resilient activities.
CANPA, established in 2024, builds on two earlier Canadian-backed funds and aims to support private-sector projects across Asia and the Pacific focusing on climate and nature-based solutions while also promoting gender equality.
Converse Bank, established in 1993 and headquartered in Yerevan, is one of Armenia’s leading commercial banks, with a particular focus on MSME financing and financial inclusion.
The partnership gives the bank access to the kind of longer-duration funding that is difficult to source domestically, and that small businesses typically need to invest in equipment, expand operations, or weather economic shocks.
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