YEREVAN, July 9./ARKA/. VTB experts assess international export and import factoring between Armenia and Russia at about $800 million a year, VTB Bank (Armenia ) said.
VTB Bank (Armenia) jointly with VTB Factoring (Russia)Ltd. participated Thursday at a seminar in Yerevan to discuss factoring funding. Over 50 business representatives, enterprise chiefs, officials of the Central Bank and ministries of Armenia and reporters were present. VTB Factoring specialists spoke about the opportunities and different aspects of classic and international factoring funding.
VTB Bank (Armenia) introduced factoring service for its corporate clients at end-2010. Due to successful cooperation within VTB Group and with VTB Factoring, the bank managed to process the first international transaction early in 2013. Through classic factoring, business transfers its accounts receivables to a third party (factor) in exchange for funding. In addition, a customer can bring unpaid invoices to the bank, get up to 90% of unpaid amount, and receive another 10% after a buyer makes payment.
According to the United Nations Commodity Trade Statistics Database, trade turnover between Armenia and Russia in 2012 exceeded 1.3 billion US dollars. The trade surplus over the resent 10 years has been positive for Russia: import from Russia values at about 1 billion US dollars.
Artem Sharibjanov, international affairs consultant to VTB Factoring Board, reported to the seminar participants on the program of factoring financing of deliveries to Russia. The program also offers factoring for alcohol products delivery. Within the framework of the program, VTB Bank (Armenia) is offering financing to its client companies from Armenia, VTB Factoring is responsible for Russian customers.
Sharibjanov also said VTB Factoring jointly with VTB Bank (Armenia) had processed the first factoring transaction between Armenia and Russia in spring 2013, its current financing had exceeded 200 million rubles.
“The project implementation model is unique for Russia and the CIS. On the one hand, the transaction has been processed based on the model of two-factor international factoring, on the other hand- both factors are included into one banking system,” he added.
He also noted due to this system it is possible to coordinate the principles of limited policy pretty efficiently, make fast decisions and act flexibly when considering some non-standard issues.
Yuri Gusev, General Director – Chairman of the Board of Directors at VTB Bank (Armenia), on his side, said due to successful cooperation within VTB Group and VTB Factoring, the bank had processed its first factoring transaction in spring 2010. Gusev added that the bank anticipates great perspectives for practicing international factoring to boost trade turnover between Russia and Armenia.
“We believe that international factoring is something that is needed for the export-oriented economy of Armenia as a mechanism to cover export risks and at the same time as a mechanism of unsecured funding,” he noted.
Gusev added the bank jointly with VTB Factoring will be able to offer its client exporters this complex service at the best conditions.
“In the perspective, we expect to expand our geography and offer this service in all countries where VTB Group is functioning, which are trade partners of Armenia- Georgia, Ukraine, Belarus, Kazakhstan, EU member states, China, etc,” he said.
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-
