The European Bank for Reconstruction and Development (EBRD) and Ameriabank have signed an agreement enabling the Armenian bank 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 in Armenia and builds on Ameriabank's relationship with EBRD which has enabled it to significantly increase its letter of credit (L/C) business.

Supporting local businesses

The local currency agreement with EBRD aims to enhance Ameriabank's capacity to support local businesses engaged in international trade by ensuring access to stable and localised funding solutions.

Under the agreement, 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.

Ameriabank and TFP

Cooperation between Ameriabank and the EBRD under its 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 TFP, which enabled the bank to make trade finance tools, including L/Cs and bank guarantees, more accessible for local exporters.

Ameriabank is a multiple winner of the TFP Deal of the Year annual award. In May it was able to report a surge in L/C and guarantee business that won it awards from both the TFP and the International Finance Corporation's Global Trade Finance Programme(DC World News, 27 May 2024).

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.