ArmInfo.Over nearly 25 years of operations in Armenia, the German-Armenian Fund (GAF) has attracted over EUR700 million in credit resources from international financial institutions, which have been provided to the country's SME sector through banks and credit companies. Daniel Azatyan, Chairman of the Union of Banks of Armenia (UBA), announced this during the opening of the forum "SME Sector: Impact and Development Challenges," specifying that approximately 350,000 loans have been issued, with the portfolio growing threefold.
"The activities of the German-Armenian Fund are one of the best examples of such collaboration, combining experience, resources, and a long-term development vision," the UBA Chairman said. As of March 2026, GAF's loan portfolio, broken down by sector, is distributed as follows: industry - 29%, trade - 25%, services - 17%, agriculture - 12%, construction - 8%, and others. Notably, the share of non- performing loans (NPLs) under GAF programs is virtually zero.
Azatyan noted that the loan programs implemented by the German-Armenian Fund have laid the foundation for the development of green finance and support for women's entrepreneurship in Armenia, as well as the construction of renewable energy facilities in accordance with the best international standards. He added that GAF's activities have contributed to the development and strengthening of capacity in both the financial system and the SME sector. "The involvement of international consulting organizations in the implementation of loan programs under grants provided by the German government and the European Union has become extremely important," he noted. It should be noted that this forum was organized by the Union of Banks of Armenia in collaboration with the Central Bank and the German-Armenian Fund.
The forum "SME Sector: Impact and Development Challenges" is an important platform for constructive dialogue and cooperation between businesses, the government, international partners, the banking system, and now credit institutions. This forum aims to foster new partnerships, discuss development prospects and existing challenges, and develop practical solutions. The Union of Banks of Armenia launched forums dedicated to the SME sector last year in the Aragatsotn region, and subsequently continued in Syunik and Lori.
The German-Armenian Fund (GAF) is a specialized institution established in 1998 to attract, manage, and distribute international financial resources aimed at developing the country's economy. The Central Bank of Armenia is a co-founder of the Fund. The Fund's primary mission is to support Armenia's sustainable economic growth through financing small and medium-sized businesses and implementing targeted development programs in partnership with international financial institutions and donors.
Key partners of the Fund include KfW, the European Investment Bank (EIB), the World Bank (WB), and the Asian Development Bank (ADB), as well as other donor organizations.
GAF's activities cover a wide range of areas, including traditional SME lending, green finance development, support for energy efficiency projects, agriculture, women's entrepreneurship, and sustainable development programs.
