YEREVAN, October 18. / ARKA /. Since 2013 April the HSBC Bank Armenia has issued 6.9 billion drams worth documentary letters of credit as part of its campaign to finance equipment purchase, said Aram Pinadjyan, HSBC Bank Armenia Director of Commerce and Credit during the eighth Academy of Trade Finance.
According to him, this campaign enables Armenian businesses to get finance for import of equipment and production lines at an unprecedented interest rate of 7% per annum.
"This is an unprecedented for the Armenian market financing tool showing that lending may be available,” said Pinadjyan.
He stressed that the campaign allows importers to postpone payments up to 30 months, despite the fact that the exporter receives full payment in advance. He added that the goal is to help Armenian companies to establish contacts with UK exporters of equipment.
Head of Trade Finance Department Kamo Margaryan said the bank plans to release another 4 billion drams worth documentary letters of credit before the end of this year as part of equipment purchase financing campaign.
"We have also launched a new tool in the Armenian market - hedging currency risks, which enables clients to curb currency risk by fixing the exchange rate at a certain time period," Margaryan said.
In the first nine months the bank has provided 20 billion drams to finance trade, which is 31 % higher than in the first nine months of 2012.
HSBC Bank Armenia’s assets in the third quarter of 2013 rose by 8 percent from the beginning of the year to 227 billion drams. Its total lending grew by 3 percent to 133 billion drams, deposits grew by 6 percent to 144 billion drams and income before tax grew by 11 percent from the year before to 7.98 billion drams.
HSBC Bank Armenia launched the Trade Finance Academy in 2010 to provide business people with tools for financing foreign trade, risk assessment and effective management necessary to enter new markets.
HSBC Bank Armenia is a member of HSBC Bank plc. Seventy percent of its shares are owned by HSBC Europe BV and 30 percent by the Wings Establishment. HSBC Bank Armenia joined NASDAQ OMX Armenia stock exchange in 2009 January. ($1-406,36 drams). -0-