ArmSwissBank has once again received the “Most Active Issuing Bank” and “Best Deal of the Year” awards by the European Bank for Reconstruction and Development (EBRD).

Anzhela Barseghyan, Deputy CEO of ArmSwissBank and Director of Trade Finance and Correspondent Relationship Department, spoke about the bank’s awards received in the trade finance sector, target clients, the services it offers and personalized solutions it provides.

- Mrs. Barseghyan, ArmSwissBank has received the “Most Active Issuing Bank” and “Best Deal of the Year” awards. What do these recognitions from the EBRD signify?

- Each year, the Trade Finance Program (TFP) session is held within the framework of the Annual Meeting held by the EBRD. The main objective of the Trade Finance Program is to support and develop international trade finance across EBRD partner countries. During this event, awards are presented to EBRD partner banks that have demonstrated outstanding activity or executed transactions of particular significance during the year. This year, ArmSwissBank was the only bank in Armenia to receive these awards. Moreover, we received the “Most Active Issuing Bank of the Year” award for the seventh consecutive year, and have been recognized as the winner in the “Best Deal of the Year” nomination for the third time.

The EBRD has been the bank’s strategic partner for about 15 years, and these awards are a clear reflection of our deepening and effective cooperation in the field of trade finance. It is noteworthy that over the course of our cooperation, the trade finance limit allocated to our bank has increased nearly tenfold – now one of the largest in Armenia’s banking sector.

- Since ArmSwissBank does not engage in widespread advertising, many may not be aware of the range of services you offer. Could you tell us more about your target clientele?

- The bank’s limited use of advertising is a deliberate choice, shaped by our strategic approach. As we do not provide mass-market services, we rely on Direct Marketing principles, which have consistently proven effective. This approach enables us to design and offer tailored solutions directly to our core clientele.

The bank’s target clients are legal entities, in particular, medium and large enterprises involved in production or international operations, especially in the export direction.

We offer a full suite of corporate banking services that go beyond conventional short- or long-term business loans. The bank’s toolkit also includes flexible investment solutions that help to effectively manage temporarily idle funds and hedge against foreign exchange risks.

In the field of trade finance, we provide alternative financing mechanisms that both support sales growth and offer the agility needed to adapt to rapidly changing market conditions.

Our goal is not merely to serve as a financing institution, but to be a genuine partner that deeply understands each client’s business model, supports the development process, and helps overcome challenges.

- How does ArmSwissBank approach trade financing, especially in light of current market challenges and customer needs?

- ArmSwissBank has always placed strong emphasis on the development and implementation of trade finance instruments, closely cooperating with both foreign banks and international financial institutions. A key focus has been the design and expansion of collateral-free products, particularly aimed at supporting exporters. We took early steps in this direction back in 2008, becoming the first Armenian bank to join the FCI (Factors Chain International).

In addition, we have carried out extensive work in partnership with the Export Insurance Agency of Armenia to develop and launch joint products.

I strongly believe that our achievements in this field stem from a clear strategic vision: when addressing our clients’ financial needs, we don’t limit ourselves to traditional lending practices. Instead, we strive to identify and provide the most suitable trade finance tools that effectively mitigate transaction risks while fully addressing the client’s financial objectives.

– What are the main risks mitigated by trade finance instruments, and how does the bank manage them?

- Participants in international trade face several key risks, in particular, the risk of non-fulfillment of obligations by the counterparty, including non-payment, as well as foreign exchange risk. Therefore, when considering each transaction, we assess these risks and build trade financing solutions accordingly.

To address these risks, ArmSwissBank offers a diverse range of instruments. For instance, to mitigate buyer non-payment and country risk, we work with partner banks abroad or credit risk insurance companies. To manage foreign exchange risk, when developing a trade financing transaction, we combine it with a forward instrument to fix the exchange rate, shielding clients from potential future currency losses.

By the way, the bank also specializes in derivative instruments, which allows our customers to hedge currency risks in various situations.

Our collaboration with international financial institutions and global banks enables us to operate without restrictions in terms of currency or geographic coverage when it comes to trade finance tools. I would also highlight that recently, thanks to the use of innovative solutions, the bank’s capabilities in foreign currency transfers have expanded significantly.

- In your opinion, what is the main obstacle limiting the use of trade finance products, leading to underutilization of potential?

- In my experience, the primary barrier is the low level of awareness among customers. This is something the bank is actively working to address. We regularly organize workshops for both existing and potential corporate clients to introduce our products, present the advantages and highlight the risks they help mitigate.

In addition, ArmSwissBank actively participates in professional events hosted by international financial organizations, such as the EBRD, Asian Development Bank (ADB), and other strategic partners, sharing our rich expertise or acting as a sponsor of the event.

In particular, we’re preparing a new event focused on factoring and export financing. Interested parties can stay informed by following updates on the bank’s official website and social media platforms.

- Your bank often emphasizes green financing. How is this reflected in your trade finance activities?

- Green trade finance is a strategic priority for us. Our objective goes beyond simply financing trade – we aim to actively promote the integration of sustainability principles across various sectors. To support this goal, the bank offers preferential financing terms for transactions that align with ESG criteria. In fact, the most recent transaction that earned us an award was specifically recognized for its alignment with these principles. We firmly believe that banks play a vital role in promoting sustainable environmental and social management models.

- How do you see the development of trade finance at ArmSwissBank in the coming years, considering international trends and changing customer needs?

- Future trends in trade finance clearly indicate that demand is moving towards complex, integrated solutions. Today, we view trade finance as a platform that brings together various financial instruments, covering the entire trade cycle. This approach allows our clients to go beyond simple short-term financing or risk mitigation – it enables greater operational flexibility. In addition to traditional trade finance instruments, such as letters of credit and guarantees, the solutions we offer also include other effective supply chain finance solutions, including domestic and international factoring, pre-export financing, receivables financing. We often combine trade finance tools with leasing to effectively mitigate the risks associated with each transaction.

Of course, the described approaches become possible only when managed by a professional team that not only understand the tools at hand but also the specifics of each client’s business.

In this regard, the knowledge and years of experience of our employees remain a key source of our competitiveness. That’s why we are committed to continuing our investments in both product innovation and human capital development.

Ultimately, our vision for the future is built on a foundation of a robust partner network, an experienced team, and a commitment to continuous innovation.