Armenia’s Cabinet approves 7,136 more development bank shares

Armenia’s Cabinet approved subscribing to 7,136 additional shares in the Black Sea Trade and Development Bank for €8.21 million. Finance Minister Vahe Hovhannisyan said the subscription would preserve Armenia’s 1.01% stake in the bank.

Armenia’s Cabinet approved the additional subscription on 12 November 2026, following a 2024 decision by the bank’s Board of Governors to increase its authorized capital. Armenia voted in favor of that increase, Hovhannisyan said.

The subscription will bring Armenia’s holding to 27,136 shares and its subscribed capital to €31.21 million, Hovhannisyan said. He said the decision also preserves Armenia’s voting rights and fulfills its international commitments.

How Armenia will pay

The full commitment is not due immediately. Hovhannisyan said Armenia plans to issue an interest-free promissory note—a written promise to pay—by the end of 2026 for 30% of the amount, approximately €2.46 million. It will pay that portion in eight equal annual installments of €307,740 during 2027–2034.

The remaining 70% is callable: Armenia must pay it only if the bank demands it. Hovhannisyan did not specify the circumstances in which the bank could make that demand.

The bank’s work with Armenia

Armenia has been a founding member of the bank since 1998, Hovhannisyan said. The bank is an international development finance institution serving the eleven founding member countries of the Black Sea Economic Cooperation, a regional economic organization. It provides loans, guarantees and equity for development projects and trade in its member countries.

Hovhannisyan gave figures for the bank’s work in Armenia and its wider lending. The historical total for Armenia’s private sector is distinct from the current portfolio and project figures.