EBRD and Ameriabank to support Armenian businesses through stable trade finance funding

Armenia 22 July, 2024 21:43

EBRD and Ameriabank to support Armenian businesses through stable trade finance funding

The European Bank for Reconstruction and Development (EBRD) and Ameriabank have signed an agreement enabling Ameriabank to attract trade finance funding from the EBRD in Armenian Drams. This is the first and so far the only agreement of this kind signed by EBRD to date in Armenia. This collaboration aims to enhance Ameriabank's capacity to support local businesses engaged in international trade by ensuring access to stable and localized funding solutions.

Under this arrangement, the EBRD will facilitate trade finance transactions denominated in Armenian Drams, thereby mitigating foreign exchange risks and enhancing financial predictability for businesses involved in import and export activities financed by Ameriabank. By leveraging their combined expertise and resources, the EBRD and Ameriabank aim to foster economic growth and resilience within the region.

“For over a decade, Ameriabank has pioneered new trade finance opportunities and solutions in the Armenian market, and the invaluable support of EBRD, their extensive range of tools and resources has greatly supported us in promoting and facilitating international trade. This time, again, we are proud to be the first in the Armenian market to amend the RCA Agreement, allowing us to secure local currency funding to bolster the business of local exporters and importers. This aligns with our strategy of continuous contribution to the economy of Armenia,” commented Artak Hanesyan, CEO at Ameriabank.

"We are very pleased to expand our cooperation with Ameriabank, one of longstanding partners in Armenia, where we recently reaffirmed our shareholding commitment. This new facility in Armenian Drams under the flagship EBRD Trade Facilitation Programme will further help local businesses navigate international trade without the inherent risk of currency fluctuations. We expect this to be of great benefit to local businesses and to encourage more trade activity in the region”, said Francis Malige, EBRD Managing Director, Financial Institutions.

Cooperation between Ameriabank and the EBRD under the Trade Facilitation Programme (TFP) began in 2010. Since then, trade finance deals have been signed to support high-growth economic sectors, including IT, construction, energy, and manufacturing, while also facilitating external trade.

In 2013, Ameriabank became the first Armenian bank to receive confirming bank status under the EBRD TFP, which enabled the bank to make trade finance tools such as letters of credit (LCs) and bank guarantees more accessible for local exporters. Ameriabank is also a multiple winner of the TFP Deal of the Year annual award, recognizing financial institutions' active and efficient trade finance operations and successful international partnerships.

Ameriabank CJSC

Ameriabank is a leading financial and technology company in Armenia, a major contributor to the Armenian economy, with assets exceeding AMD 1 trillion. In the course of digital transformation, it has launched a number of innovative solutions and platforms going beyond banking-only needs of its diverse customer base, thus creating a dynamically evolving financial technology space.

Ameria was the first in Armenia to create ecosystems for both businesses and individuals, which give one-window access to a range of banking and non-banking services, among them - Estate.ameriabank.am, Automarket.ameriabank.am, Business.ameriabank.am.

As a truly customer-centric company, Ameria aims to be a trusted and secure financial technology space with seamless solutions to improve the quality of life.