YEREVAN, June 14. /ARKA /. As part of its Trade Facilitation Program the European Bank for Reconstruction and Development (EBRD) has assigned the status of the confirming bank to Armenian Araratbank. A corresponding agreement was signed on Friday at the annual meeting of the bank’s shareholders.
Confirming bank is usually a first-class bank, assuming the obligation to make payment of amounts specified in the letter of credit regardless of whether the specified amount arrived or not.
“Under the agreement, Araratbank is becoming the confirming bank as part of Trade Facilitation Program. This means that the bank will be able to confirm letters of credit or guarantees issued by foreign banks, and thereby promote Armenian exports”, head of EBRD Yerevan Office, Valeriu Razlog, said. According to him, the signing of this agreement indicates an increase in EBRD’s confidence in Araratbank.
Araratbank CEO, Ashot Osipyan said last year the bank made $7.8 million worth transactions with letters of credit.
“For us it is a very significant event that we have joined the family of confirming banks on a par with the world’s leading banks such as Raiffeisen Bank, Deutsche Bank and others”, he added.
The first bank in Armenia, assigned this status by EBRD as part of its Trade Facilitation Program was Ameriabank in May 2013.
Some 74.18% of the bank is owned Barsegh Beglaryan, the owner of the biggest oil trader Flash and 25% by the European Bank for Reconstruction and Development (EBRD). In 2009 January the bank joined NASDAQ OMX Armenia stock exchange. ($ 1 – 411.64 drams). -0 –
