Trade Facilitation Programs

Trade Facilitation Programs

For the purpose of trade facilitation and  interaction with a number of international institutions ARMECONOMBANK OJSC has signed relevant agreements for the participation in trade facilitation program with the European Bank for Reconstruction and Development (EBRD) in 2001 and International Finance Corporation (IFC) in 2006 and Asian Development Bank (ADB) in 2011.

The main purpose:

  • To foster International trade in different sectors of economy between countries included in Trade Facilitation Program,
  • Risk containment and limitation through the issuance of commercial Instruments used during import-export transactions.

The implementation of the program is a very simple and productive process

  • Issuing banks present financial Instruments to the banks abroad according to their customers instructions,
  • EBRD/IFC/ADB guarantee those Instruments,
  • Banks abroad confirm those instruments to their customers or finance the transaction.

 

  • International import and export, as well as pre-export production and financing during import,
  • Any kind of goods and International services (financial, technical, construction, transportation).
  • Real estate, automobiles, certificates of property, securities,
  • Bank counter-guarantees,
  • Other types of collateral,
  • Project advantage for the customer,
  • Flexible mechanism for the execution of operation due to the wide choice of suggested financial instruments,
  • Financing with low interest rates.
  • Choice of reliable model of financing import transaction,
  • Signing of an Agreement with a foreign partner, which will meet his interests, reducing risk by arranging the payment only after the delivery of goods,
  • Creating good conditions for financing import transactions,
  • Payment against goods after their receipt and sale.
  • Choice of reliable model of financing export transaction,
  • Signing of such an Agreement with a foreign partner which will secure his interests by reducing the risk of non-payment against received goods, getting the payment before the delivery of goods,
  • Export costs to cover purchase of raw materials and manufacturing expenses.
  • To add a point to the contract with exporter, stating that the payment shall be made through documentary credit or guarantee to mitigate financial risk,
  • In order to reduce the financial risk, note in the contract signed with the exporter , that calculations shall be made by documentary credit or warranty,
  • His consulting services are provided during the contract signing on the terms of delivery, payment type, validity period, as well as required documents from the exporter.
  • In order to reduce the financial risk, note in the contract signed with the importer, that calculations shall be made by documentary credit.
  • Visit the Bank and meet with the specialist of credit and international operations,
  • In case of positive decision complete the application attaching documentary evidence for the transaction,
  • Provide the Bank employee with the relevant contract to start process.

The execution of the Program is a simple and efficient procedure:

EBRD/IFC/ADB guarantees are extended for a wide range of goods and services, including consumer goods, equipment’s, machinery and energy supply, as well as foreign machinery, construction, technical and other service sectors.

Weapons, ammunition, military products, cigarettes, alcoholic beverages exceeding 12% any transaction with respect to gambler games and etc aren't funded under trade facilitation program.

EBRD/IFC/ADB guarantee:

During issue of L/C/Guarantee a money cover is required from the Customer. Under Trade Facilitation Program ARMECONOMBANK OJSC is able to finance its customers, in case if they do not have enough cash at hand, against the below mentioned types of collateral:

Important for importers:

Important for importers:

ARMECONOMBANK OJSC suggests:

The importer:

The exporter:

Under Trade facilitation program for the issue of LC/guarantee is required:



{tr}
Documentary LC
LC notification AMD 0.15%, min. AMD25,000
LC issue -
ARMECONOMBANK OJSC LC confirmation by other Bank As per rates of the confirming Bank
Other Bank issued LC confirmation by ARMECONOMBANK OJSC Contractual
LC transfer -
LC terms amendment AMD 15,000
LC cancellation AMD 25,000
Acceptance and inspection of LC documents without controversy  0,15%, min. AMD10,000, max. AMD 50,000 
Acceptance and inspection of LC documents with controversy AMD 50,000
LC issue with EBRD, IFC and ADB projectsAMD 50,000
LC terms amendment, cancellation under EBRD, IFC and ADB projects (additionally are charged also commission fees charged by correspondent banks) AMD 25.000
Bank guarantee in RA
Under monetary fund's collateral
Up to AMD 5,000,000 0.5% monthly
In case of exceeding AMD 5,000,001 AMD 25,000 monthly
Under other funds collateral 1% monthly
Minimum commission fee for the whole period of guarantee operation AMD 20,000
International guarantee
Guarantee notification AMD 0.15%, min. 25,000
Guarantee terms amendment, cancellation AMD 35,000
Payment against the guarantee according to the confirming Bank requirment 0.5%, min AMD 50,000
EBRD, IFC and ADB guarantee issue 0.3%, min. AMD 50,000, max. AMD 400.000
Guarantee terms amendment, cancellation within EBRD, IFC and ADB (additionally are charged also commission fees charged by correspondent Banks) AMD 35,000
Documentary collection
Documents against payment or acceptance 0,2%, min AMD 25,000 , max. AMD 60.000
Accepting and sent of documentary collection 0,2%, min AMD 25,000, max. AMD 150.000
Term amendments of collection instruction including cancellation AMD 15,000
Collection payment 0.2%, min AMD 11,000, max. AMD 50.000

  1. Additionally, commission fees and postal expenses charged by the correspondent banks may be charged.
  2. In case where the guarantee exceeds AMD 5,000,000 (or equivalent currency), the formula of commission fee calculation (in the sample the guarantee is extended with 101 days) is: AMD 25,000*12/365*101 = AMD83,013.6.
Trade Facilitation Programs

For the purpose of trade facilitation and  interaction with a number of international institutions ARMECONOMBANK OJSC has signed relevant agreements for the participation in trade facilitation program with the European Bank for Reconstruction and Development (EBRD) in 2001 and International Finance Corporation (IFC) in 2006 and Asian Development Bank (ADB) in 2011.

The main purpose:

  • To foster International trade in different sectors of economy between countries included in Trade Facilitation Program,
  • Risk containment and limitation through the issuance of commercial Instruments used during import-export transactions.

The implementation of the program is a very simple and productive process

  • Issuing banks present financial Instruments to the banks abroad according to their customers instructions,
  • EBRD/IFC/ADB guarantee those Instruments,
  • Banks abroad confirm those instruments to their customers or finance the transaction.

 

  • International import and export, as well as pre-export production and financing during import,
  • Any kind of goods and International services (financial, technical, construction, transportation).
  • Real estate, automobiles, certificates of property, securities,
  • Bank counter-guarantees,
  • Other types of collateral,
  • Project advantage for the customer,
  • Flexible mechanism for the execution of operation due to the wide choice of suggested financial instruments,
  • Financing with low interest rates.
  • Choice of reliable model of financing import transaction,
  • Signing of an Agreement with a foreign partner, which will meet his interests, reducing risk by arranging the payment only after the delivery of goods,
  • Creating good conditions for financing import transactions,
  • Payment against goods after their receipt and sale.
  • Choice of reliable model of financing export transaction,
  • Signing of such an Agreement with a foreign partner which will secure his interests by reducing the risk of non-payment against received goods, getting the payment before the delivery of goods,
  • Export costs to cover purchase of raw materials and manufacturing expenses.
  • To add a point to the contract with exporter, stating that the payment shall be made through documentary credit or guarantee to mitigate financial risk,
  • In order to reduce the financial risk, note in the contract signed with the exporter , that calculations shall be made by documentary credit or warranty,
  • His consulting services are provided during the contract signing on the terms of delivery, payment type, validity period, as well as required documents from the exporter.
  • In order to reduce the financial risk, note in the contract signed with the importer, that calculations shall be made by documentary credit.
  • Visit the Bank and meet with the specialist of credit and international operations,
  • In case of positive decision complete the application attaching documentary evidence for the transaction,
  • Provide the Bank employee with the relevant contract to start process.

The execution of the Program is a simple and efficient procedure:

EBRD/IFC/ADB guarantees are extended for a wide range of goods and services, including consumer goods, equipment’s, machinery and energy supply, as well as foreign machinery, construction, technical and other service sectors.

Weapons, ammunition, military products, cigarettes, alcoholic beverages exceeding 12% any transaction with respect to gambler games and etc aren't funded under trade facilitation program.

EBRD/IFC/ADB guarantee:

During issue of L/C/Guarantee a money cover is required from the Customer. Under Trade Facilitation Program ARMECONOMBANK OJSC is able to finance its customers, in case if they do not have enough cash at hand, against the below mentioned types of collateral:

Important for importers:

Important for importers:

ARMECONOMBANK OJSC suggests:

The importer:

The exporter:

Under Trade facilitation program for the issue of LC/guarantee is required:



{tr}
Documentary LC
LC notification AMD 0.15%, min. AMD25,000
LC issue -
ARMECONOMBANK OJSC LC confirmation by other Bank As per rates of the confirming Bank
Other Bank issued LC confirmation by ARMECONOMBANK OJSC Contractual
LC transfer -
LC terms amendment AMD 15,000
LC cancellation AMD 25,000
Acceptance and inspection of LC documents without controversy  0,15%, min. AMD10,000, max. AMD 50,000 
Acceptance and inspection of LC documents with controversy AMD 50,000
LC issue with EBRD, IFC and ADB projectsAMD 50,000
LC terms amendment, cancellation under EBRD, IFC and ADB projects (additionally are charged also commission fees charged by correspondent banks) AMD 25.000
Bank guarantee in RA
Under monetary fund's collateral
Up to AMD 5,000,000 0.5% monthly
In case of exceeding AMD 5,000,001 AMD 25,000 monthly
Under other funds collateral 1% monthly
Minimum commission fee for the whole period of guarantee operation AMD 20,000
International guarantee
Guarantee notification AMD 0.15%, min. 25,000
Guarantee terms amendment, cancellation AMD 35,000
Payment against the guarantee according to the confirming Bank requirment 0.5%, min AMD 50,000
EBRD, IFC and ADB guarantee issue 0.3%, min. AMD 50,000, max. AMD 400.000
Guarantee terms amendment, cancellation within EBRD, IFC and ADB (additionally are charged also commission fees charged by correspondent Banks) AMD 35,000
Documentary collection
Documents against payment or acceptance 0,2%, min AMD 25,000 , max. AMD 60.000
Accepting and sent of documentary collection 0,2%, min AMD 25,000, max. AMD 150.000
Term amendments of collection instruction including cancellation AMD 15,000
Collection payment 0.2%, min AMD 11,000, max. AMD 50.000

  1. Additionally, commission fees and postal expenses charged by the correspondent banks may be charged.
  2. In case where the guarantee exceeds AMD 5,000,000 (or equivalent currency), the formula of commission fee calculation (in the sample the guarantee is extended with 101 days) is: AMD 25,000*12/365*101 = AMD83,013.6.
Last modified on Thursday, 10 November 2016 11:07