Galstyan: Dialogue between businesses and banks is crucial to increasing the share of SMEs in Armenia's GDP to 40%
12.05.2026,
15:30
To increase the share of small and medium-sized businesses in Armenia's GDP to 40%, not only interest rates are important, but also the development of dialogue between banks and entrepreneurs, stated Martin Galstyan, Chairman of the Central Bank of Armenia.
YEREVAN, May 12. /ARKA/. To increase the share of small and medium-sized businesses in Armenia's GDP to 40%, not only interest rates are important, but also the development of dialogue between banks and entrepreneurs, stated Martin Galstyan, Chairman of the Central Bank of Armenia.
Last week, Prime Minister Nikol Pashinyan stated that by 2031, SMEs should account for 40% of Armenia's GDP.
"Thanks to such meetings and the creation of platforms for dialogue between banks and small and medium-sized businesses, we will find ourselves in a situation where we can achieve these goals. "I have no doubt about this, because we have a talented business community and banks that, by building relationships with entrepreneurs, provide lending opportunities that drive our economy forward," Galstyan told reporters on the sidelines of the "SME Sector: Impact and Development Challenges" conference.
The head of the Central Bank noted that interest rates on SME loans vary significantly depending on the risk profile of each individual company.
"Generally speaking, rates are approximately 13-14%. Some SMEs receive loans at 11%, while others receive loans at 19%," he said.
Galstyan emphasized that reducing interest rates on loans for bona fide businesses by 1-1.5% is not a universal solution for the entire sector.
"We are talking exclusively about bona fide SMEs that have no overdue loan or tax liabilities," he stated.
The regulator's head also noted that Armenian companies are becoming more transparent over time, and the state is facilitating this through support programs, including partially subsidizing audits and business ratings.
According to the Union of Banks of Armenia, SMEs account for approximately 37% of the Armenian economy and receive approximately 60% of business loans.
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Last week, Prime Minister Nikol Pashinyan stated that by 2031, SMEs should account for 40% of Armenia's GDP.
"Thanks to such meetings and the creation of platforms for dialogue between banks and small and medium-sized businesses, we will find ourselves in a situation where we can achieve these goals. "I have no doubt about this, because we have a talented business community and banks that, by building relationships with entrepreneurs, provide lending opportunities that drive our economy forward," Galstyan told reporters on the sidelines of the "SME Sector: Impact and Development Challenges" conference.
The head of the Central Bank noted that interest rates on SME loans vary significantly depending on the risk profile of each individual company.
"Generally speaking, rates are approximately 13-14%. Some SMEs receive loans at 11%, while others receive loans at 19%," he said.
Galstyan emphasized that reducing interest rates on loans for bona fide businesses by 1-1.5% is not a universal solution for the entire sector.
"We are talking exclusively about bona fide SMEs that have no overdue loan or tax liabilities," he stated.
The regulator's head also noted that Armenian companies are becoming more transparent over time, and the state is facilitating this through support programs, including partially subsidizing audits and business ratings.
According to the Union of Banks of Armenia, SMEs account for approximately 37% of the Armenian economy and receive approximately 60% of business loans.
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