Documentary letter of credit, banking guarantee portfolio of Armenia’s Ameriabank at over $53mln in q3

YEREVAN, October 31. /ARKA/. Documentary letter of credit and banking guarantee portfolio of Armenia’s Ameriabank amounted to about $53 million in the third quarter, an increase of 29% compared to Q3 2012, director for corporate clients of Ameriabank Gagik Sahakyan said.

“Our studies show the share of Ameriabank on the market of trade financing through financing instruments exceeds 50%. We are planning to increase the letter of credit and banking guarantee portfolio up to $70 mln”, Sahakyan said.

Factoring portfolio, he said, amounted to $6.5 million in the reporting period, a 77% increase compared to Q3 2012.

“Factoring is a more risky product, but our instruments allow minimizing the risks. This year we joined the International Factoring Association, and concluded a number of international factoring deals for exporters”, Sahakyan said.

Ameriabank’s director for corporate clients also said leasing portfolio totaled about $7 million in the nine months, a reduction of 10% compared to the same period of the year before. Number of leasing transactions increased from 10-15 last year to 45 in the first three quarters of 2013, he added.

Imports (clothing, sugar, grain, and etc.) accounted for 60% of consumer trade financing and exports (fresh fruits and vegetables, textile, fish, and etc.) were 40%.

Equipment and machines for IT and mining constituted about 30% of the bank’s trade financing portfolio, Sahakyan said.

Ameriabank is a universal bank that provides investment, corporate and retail banking services. ($1=405.30drams). –0--