The Armenian government approved the acquisition of 7,136 additional shares in the Black Sea Trade and Development Bank (BSTDB) at its November 12 meeting, allowing the country to maintain its current ownership stake and voting rights.
Presenting the decision, Finance Minister Vahe Hovhannisyan recalled that Armenia has been a founding member of the bank since 1998. Over that period, the institution has provided approximately €400 million in trade and project financing to Armenia’s private sector, Armenpress reports.
“Today, the bank’s active loan portfolio amounts to approximately 1.5 billion euros, of which approved projects in Armenia account for around 120 million euros, while financing actually disbursed totals approximately 84 million euros. Although Armenia’s share in the bank’s capital is only 1.01%, the volume of financing for projects implemented in our country significantly exceeds the relative weight of that participation. This demonstrates that cooperation with the bank has practical economic significance for Armenia,” Hovhannisyan said.
The minister noted that the BSTDB’s Board of Governors had approved another increase in the bank’s authorized capital in 2024, with Armenia voting in favor of the decision.
“The capital increase aims to expand the bank’s financial capacity, particularly for financing projects in the real sector of the economy, public-private partnerships and initiatives of regional significance. Armenia will subscribe to an additional 7,136 shares in the bank, with a total value of 8,206,400 euros. As a result, our country’s total number of shares will reach 27,136, while its subscribed capital will amount to 31,206,400 euros. At the same time, Armenia’s current 1.01% participation in the bank’s capital will be maintained,” he explained.
Hovhannisyan emphasized that Armenia would not be required to pay the full amount immediately.
“For 30% of the total amount, approximately 2.46 million euros, an interest-free promissory note is expected to be issued by the end of 2026. Payments will be made in eight equal installments between 2027 and 2034, meaning the annual payment will amount to 307,740 euros. The remaining 70% will be payable only upon demand,” he said.
According to the finance minister, the decision will allow Armenia to fulfill its international commitments, preserve its voting rights and ensure the continuity of financial and economic cooperation with the bank.
