IFC Provides $5 Million Guarantee to Ardshininvestbank to Facilitate Trade in Armenia
In Yerevan:
Narine Hayrapetyan
Phone: +37410 545242
E-mail: NHayrapetyan@ifc.org
In Moscow:
Nezhdana Bukova
Phone: +7495 411 7555
E-mail: NBukova@ifc.org
Yerevan, Armenia, June 15, 2009—IFC,
a member of the World Bank Group, is providing Armenia’s Ardshininvestbank
with a $5 million trade-finance guarantee that will facilitate trade in
the country by helping the bank finance the foreign trade transactions
of Armenian companies.
Ardshininvestbank has joined IFC’s Global Trade Finance Program as an
issuing bank, gaining access to global network of banks supporting trade-finance
operations. By extending and complementing banks’ capacity to provide
trade finance, IFC aims to increase developing countries’ share of global
trade and promote flows of goods and services among those countries.
“We appreciate the strong support from IFC, our long-term partner and
shareholder, during these difficult times,” said Karen Safaryan, Chairman
of the Council of Ardshininvestbank, who signed the agreement to become
an issuing bank today. “The trade finance program will give us more opportunities
to help our clients reach global markets.”
Snezana Stoiljkovic, IFC Director for Central and Eastern Europe, said:
“We are glad to expand our partnership with Ardshininvestbank. Through
this cooperation, we offer an incentive to the import and export operations
of local businesses and support additional opportunities for job creation
and economic growth in Armenia.”
Under the Global Trade Finance Program, which was launched in 2005, IFC
provides partial or full guarantees for individual trade transactions and
covers the payment risk of issuing banks in various countries. The program
allows issuing banks to increase the volume and value of trade transactions,
with enhanced tenors and access to competitive pricing terms.
Global trade is projected to contract this year for the first time since
1982. The World Trade Organization has cited the contraction in trade finance
as a significant contributor to the decline in trade activity, which has
been particularly acute in emerging markets. In response to the crisis,
IFC has approved a $1.5 billion increase to the Global Trade Finance Program,
doubling its ceiling to $3 billion.
To date, 135 issuing banks in 69
countries and 154 confirming banks in 76 countries have become members
of the program. More than 2,600 guarantees have been issued for over $3.4
billion in commitments. Nearly one-third of the transactions involve trade
between emerging markets, with 75 percent supporting small and medium importers
and exporters.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
About Ardshininvestbank CJSC
Founded in 2003, Ardshininvestbank is one of the largest and most successful
banks in Armenia. As of the first quarter of 2009, Ardshininvestbank was
the second-largest bank in Armenia in terms of total capital (about $72
million). The bank operates a total of 55 branches throughout the country,
and also has an office in Paris. It participates in the Assistance to Agricultural
Reforms and Enterprise Development Programs of the World Bank, the International
Migration Organization Loan Program, as well as in the SME Development
Loan Programs of the Armenian National Center. For more information, visit
www.ashib.am.
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