OREANDA-NEWS. The Asian Development Bank’s (ADB) Trade Finance Program (TFP) has approved its first-ever trade loans in Armenia under its Revolving Credit Facility (RCF). The RCF loans, which support pre-shipment and post-shipment trade transactions, were extended to three Armenian banks—Ameriabank, Ardshinbank, and ArmEconomBank.

The loan to Ameriabank has been extended to support the export of Armenian cheese to one of Russia’s largest consumer retailers while the loan to Ardshinbank is supporting Armenia's sole electricity distributor to import capital equipment. The loan to ArmEconomBank has allowed a Yerevan-based company to import medium-density fiberboard from Georgia for its specialist furniture goods business.

Prepared foodstuffs are among Armenia’s principal exports, accounting for roughly 21% of the total, while machinery and equipment is the second-largest import category, accounting for about 14% of the total. The furniture industry was one of the few sectors that registered positive growth during Armenia’s economic slowdown in 2015.

Ameriabank and Ardshinbank are the country’s two largest banks in terms of total assets and loans, with Ameriabank’s assets now topping $1 billion—the highest ever in the country’s independent banking history. ArmEconombank was the 11th largest in 2015.

Backed by ADB's AAA credit rating, the TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. With dedicated trade finance specialists and a response time of 24 hours, the program has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region’s most challenging markets.

Since 2009, the Trade Finance Program has supported more than 7,500 small and medium-sized enterprises across the region, with about 11,000 transactions valued at over $22 billion, in sectors ranging from commodities and capital goods, to medical supplies and consumer goods.