Areximbank-Gazprombank Group presents up-to-date trade financing instruments to its corporate clients

YEREVAN, February 22. /ARKA/. Areximbank-Gazprombank Group, at a seminar held Wednesday, presented up-to-date documentary transaction instruments to its corporate clients.

The seminar attendees were also told how these instruments are applied to financing foreign trade deals.

“Our key objectives are to inform our clients about various types of letters of credit and bank guarantees and about mechanism of their provision,” Ruben Khachatryan, deputy CEO of the bank, said at the seminar.

He also said that the seminar participants will also be informed about latest changes in International Trade Terminals and International Uniform Rules for Demand Guarantees.

Speaking about trade financing, Khachatryan said the bank is able to fund transactions by providing credit lines or via credit lined provided by other correspondent banks – cheap financial resources are attracted on this scheme.

“Cost of such a product is far lower than a direct lending to corporate clients,” he said.

In particular, annual interest rates on ordinary loans in dollars average 11-13% in Areximbank, while those at Gazprombank average 4-5%.

Annual interest rate can even be lowered to 3-3.5%, depending on the amount of a deal.

“These lending terms are best in the country today,” Khachatryan said.

He singled out promptness and speed in formalizing loans as well as protection of all parties’ commercial interests and minimization of financial risks in concluding deals.

Areximbank-Gazprombank Group (former Areximbank, renamed on June 12, 2009) was established in August 1998 for supporting entrepreneurship and serving financial flows between Russia and Armenia.

Areximbank – Gazprombank Group is a member of VISA International and MasterCard International payment systems.

In November 2007, Russian Gazprombank acquired bought 80% of Areximbank’s shares.

In July 2008, Areximbank issued additional bonds, which were bough by Gaprombank as well.

As a result, Gazprombank’s share in Areximbank reached 94.15%.

In September 2008, Gazprombank bought the remaining 5.85% from Raiffeisenbank and is now the sole owner of the bank.-0—

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