Revolving trade finance loan facility to Ardshinbank (Armenia)
Project description
Revolving trade finance loan facilityProject objectives:
Providing a revolving loan facility of up to US $20,000,000 to finance trade contracts between the borrower’s clients and counterparties registered in the EDB member states, related to imports and exports to and from Armenia
Effects
Sustainable development effect:
The project holds the potential to enhance Armenia’s financial system by fostering the development of trade finance products. It aims to promote banking activities, including business lending, and the expansion of the borrower’s customer base, facilitating development in the real sector.
Implementing and advancing trade finance instruments can indirectly contribute to the development of real sectors across the Bank’s member states. The entirety of the funding will be allocated to finance exports and imports aimed at enhancing mutual trade among the Bank’s member states.
The project entails subprojects financing export and import transactions for the borrower’s clients. The project indirectly propels advancements in the real sector, employment, improved living standards and increases in tax revenues.
Integration effect:
- The project provides a loan facility for trade finance.