SME trade finance instruments at focus of EBRD conference in Yerevan

PanARMENIAN.Net - Yerevan is hosting a trade finance conference organized by European Bank for Reconstruction and Development (EBRD), in cooperation with the European Union (EU) to increase awareness and facilitate better access to trade finance instruments for small and medium-sized enterprises (SMEs) in Armenia. During the two-day event, internationally renowned industry experts will discuss the opportunities and challenges faced by local entrepreneurs in accessing trade finance in Armenia, EBRD website said.

Mike Taylor, EBRD Director for Financial Institutions in Central Asia, Caucasus and Mongolia, opened the conference Wednesday, October 1, welcoming and addressing the conference participants.

“The EBRD remains a committed partner in Armenia, paying special attention to supporting local SMEs, which play a leading role in the development of the trade sector. We would like more companies to be fully aware of all the financing options available to them and be in a position to use those alternatives,” said Mike Taylor. “I would also like to thank the EBRD’s long-standing partner banks, Armeconombank and Ameriabank, the lead sponsors of this event, who have greatly contributed to improving access to available trade finance for SMEs,” he continued.

“This is an important event for Armenia, a unique opportunity to bring together so many trade finance experts and key local stakeholders to discuss and address the industry challenges,” said Maria Mogilnaya, Analyst within the EBRD’s Trade Facilitation Programme. “Organised together with the EBRD’s Small Business Support, this event will contribute to expanding SME access to trade finance in Armenia.”

As she noted, currently Armenia comes 3rd (preceded by Russia and Belarus) for the number of EBRD’s trade financing transactions.

Gagik Sahakyan, Corporate Banking Director at Ameriabank, said: “Highlighting the important role of SMEs in the economic development of Armenia, Ameriabank has tailored its trade finance policy to meet the specific financing needs of SMEs. As a result, in the 8 months leading to the beginning of this year, Ameriabank’s trade finance portfolio increased by 17 per cent, which represents a growth of 43 per cent in year-on-year terms. This outstanding growth was attributable to the persistent work of bank staff as well as the implementation of trade finance programmes with international financial institutions, and especially projects designed by the EBRD’s Trade Facilitation Programme.”

The head of Trade Finance Department at Ameriabank, Suren Kocharyan hailed the fast-paced development of trade financing sector in Armenia.

“Compared with traditional finance instruments, trade finance instruments are easier to access, offering more favorable and flexible conditions for both export and import. Next year will see a significant export growth in Armenia in view of the U.S. and EU-imposed sanctions against Russia,” Kocharyan said, predicting a 50% export upsurge.