YEREVAN, April 12./ARKA/. VTB Bank (Armenia) CJSC jointly with VTB Factoring Ltd. made the first factoring deal between Armenia and Russia, the bank reported to ARKA on Friday.
Thus, VTB Bank (Armenia) is obliged to finance a client, and VTB Factoring assumes the risks of the Russian debtor. The limited threshold of financing stands at over 100 million rubles.
“The format of the project implementation is unique for Armenia, Russia and CIS. On the one hand, the deal processing complies to the model of two-factor international factoring, on the other hand—both factors belong to the same banking group VTB. This, in turn, ensures coordinating principles of limited policy, quick decision-making, fast services and flexibility,” the source states.
Yuri Gusev, General Director and Chairman of the Board of Directors at VTB Bank (Armenia), said the bank launched the factoring service for its corporate clients at end-2010. He noted the bank successfully implemented the first deal early in 2013 due to the efficient internal cooperation at VTB Group and collaboration with VTB Factoring.
“We see big perspectives for applying international factoring in trade turnover between our countries. We believe, Armenia’s export-oriented economy needs international factoring as a tool to cover export risks, and at the same time, as a mechanism of unsecured financing. That’s why we, jointly with VTB Factoring, can offer to our exporter clients this complex services under the best conditions efficiently applying the privileges of the growing network of specialized companies and banks of VTB Group,” the bank quoted him as saying.
Anton Musatov, Director General of VTB Factoring Ltd., said the parties could process this deal due to VTB affiliate in Armenia.
“It is the first international deal we have made, and we believe we have great perspectives to develop international factoring in the regions where we have our subsidiaries. VTB Group is a unique bank in Russia which has such an international network. It includes over 30 banks and financial companies in over 20 countries,” he noted.
Musatov added the company plans to establish cooperation with Georgia, Belarus, Ukraine and Kazakhstan by the end of 2013.
VTB Factoring Ltd., subsidiary of VTB Bank OJSC, has been offering factoring services since 2009. Since 2011 VTB Factoring has been leading the Russian factoring market. Its network stretches over 17 largest cities of Russia. Clients can also receive factoring services at VTB Bank’s branches. VTB Factoring is a member of IFGroup and Associations of Factoring Companies.
Bank VTB (Armenia) joined VTB Group in April 2004. VTB, the second largest bank of Russia, holds 100% of shares of Bank VTB (Armenia). Bank VTB (Armenia) has 67 branches all over Armenia’s territory. Bank VTB (Armenia) is traditionally reckoned among leaders for general indicators. -0-
