Financed ProjectsACBA Bank Trade Finance Credit Line

Identification Code:

OP/05/0507

Total Operation Cost:

0

Maturity:

12 months

Operation Status:

Description and Purpose of the Operation:

The combined Trade Finance facility is used to advance sub-loans to Armenian exporters to finance production and trade and enable proposing deferred payment terms to their counter-parties under export contracts, as well as to provide short-term financing to importers for importing goods to Armenia from other member countries of BSTDB.

Countries of Operation:

Armenia (100,00 %)

Financial Product:

Trade Finance

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

ACBA, the only cooperative bank in the CIS countries, was founded in March 1996 to finance the development of the agricultural sector in Armenia. The establishment of the bank resulted from a joint initiative of the Government of Armenia and the European Union. While the primary purpose for ACBA’s establishment was to channel financing to the Armenian agricultural sector, the Bank has expanded its activities to retail sector as well as to servicing other sectors of the economy.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

In cooperation with ACBA, BSTDB will be able to reach a larger number of companies in Armenia and contribute to increasing of intra-regional trade among the member countries.

Environmental Classification and Impact (summary):

In order to reduce/avoid any Environmental, Health & Safety (EH&S) impacts that potentially may arise from trade finance activities the Borrower is required to follow the BSTDB's Negative List of Goods, including the Environmental Exclusion List, and subject domestic legal requirements, as well as make sure that the Beneficiaries fully comply with these requirements. The Borrower is also required to immediately notify the Bank of occurrence of any incident or accident relating to any underlying export or import transaction of which the Borrower is, or ought to be aware, and which is likely to adversely affect the state of environment, and/or human health and safety.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org