The Asian Development Bank (ADB) has approved its first trade loans in Armenia.
The development bank extended revolving credit facilities (RCFs) to three local banks: Ameriabank, Ardshinbank and ArmEconomBank.
The Ameriabank facility will support the export of Armenian cheese to a large retailer in Russia. The Ardshinbank loan will support the import of capital equipment for the country’s central electricity distributor. The ArmEconBank RCF will allow a Yerevan-based company to import fibreboard from Georgia, for use in the manufacture of specialist furniture.
“The RCF is an important and well-established trade finance product and we are glad to activate it in Armenia. RCF loans help fund trade transactions throughout a firm’s trading cycle, therefore improving its cash flow,” says Nana Khurodze, the ADB’s trade finance programme relationship manager for Central Asia and the Caucasus.
ADB head of trade finance, Steven Beck, adds: “Working with our partner banks in Armenia to extend loans to companies, including SMEs, to expand their import and export activities, will help fuel growth and job creation, so we’re really pleased to play this role.”