HSBC Bank Armenia has issued 6.9 billion drams (AMD6.9 billion -- US$17 million) worth of letters of credit (L/Cs) since April 2013 as part of its campaign to finance equipment purchases.

The bank's director of commerce and credit, Aram Pinadjyan, described the L/C campaign as an, "unprecedented...financing tool" for the Armenian market.

Payment terms

Pinadjyan said the campaign enables Armenian businesses to obtain import finance for equipment and production lines at an unprecedented annual interest rate of 7 per cent.

He says the campaign allows importers to postpone payments for up to 30 months, even though the exporter receives full payment in advance.

Campaign aims

The goal is to help Armenian companies establish contact with UK equipment exporters, according to Pinadjyan.

Meanwhile, the bank's head of trade finance, Kamo Margaryan, says it plans to release another AMD4 billion worth of L/Cs before the end of this year as part of the equipment purchase financing campaign.

In the first nine months of 2013, HSBC Bank Armenia has provided AMD20 billion worth of trade finance, up 31 per cent compared with the same period in the previous year.

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