HERE AND BEYOND
Ameriabank: Demand for leasing grows dynamically in Armenia
Media Room
Yerevan, 13.11.08, ArmInfo.    AMERIABANK foresees dynamic growth of its factoring portfolio in 2009, which will total to AMD 120 mln by the end of the current year. As the Factoring Unit Manager of AMERIABANK Armen Baghdasaryan told to the correspondent of ArmInfo, the factoring portfolio growth will be supported by implementation of planned projects, by correct use of the potential of classical factoring market.
 
“The concept of “classical factoring” in Armenia is often associated with consumer lending.   Due to not distinguishing “factoring” from “consumer loan”, both banks and borrowers suffer. Classical factoring offered by AMERIABANK is a set of financial services provided in exchange for assignment of accounts receivable. In the meantime, certain legal entities show interest in using the full commercial factoring scheme offered by us, which is directed, in the first place, to trade financing”, - mentioned Mr. Baghdasaryan, and added that the Bank will execute its first factoring operations in August of the current year.
 
The Factoring Unit Manager of AMERIABANK informed that the Bank is ready to provide factoring services to such enterprises in various industry branches, which need trade financing. At that, the Bank offers several types of domestic and international factoring each. The first type implies the right of regression, whereby the supplier, once the cargo is loaded and bill of lading documents are submitted to the bank, immediately receives financing at the amount of 90% of the supply amount. The bank transfers the remaining amount, after deducting factoring fees, to the account of the suppler, once the debtor pays for the commodity.  In this case, the supplier bears the risk of full or partial failure of the debtor to pay for the supplied commodities. The second type is full factoring, whereby in addition to collection services and management of accounts receivable, the bank covers the risk of non-payment by the debtor.
 
Mr. Baghdasaryan informed that at present the Bank is executing three current operations on export factoring to Ukraine and Russia. The interest rate on disbursed factoring financing starts from 12% annual, with factoring fee varying from 0.7% to 3%, and 120-day of maximum term of providing a factoring.
 
In addition, as Mr. Baghdasaryan informed us, in 2009, AMERIABANK intends to become a full member of “International Factors Group” and “Factors Chain International” international factoring organization, which will allow the Bank to attract wide range of clientele base from over 50 developed countries. “International factoring is of much interested to us in terms of creative decisions”, emphasized Mr. Baghdasaryan, and added that the Bank directly collaborates with the largest Russian factoring company “Eurocommerce”, which is an affiliate of “Troika Dialog” large Russian investment company.
 
According to the estimates of experts, presently, the factoring services market potential in Armenia is nearly $10 mln. Along with AMERIABANK, “Armswissbank”, and Inecobank also work in the classical factoring market of Armenia.
 
We would like to remind that factoring operations in the Armenian market started to develop in the beginning of 2000. Larger activeness of market players ensured $12–15 mln turnover in 2002-2003. The factoring market started to fall from 2004, and the volume of factoring transactions came to zero. From 2006, the banks started to show interest in factoring again. In the middle of 2004, the first Russian National factoring company (NFC) “URALSIB-NIKOIL” announced about its readiness to assist Armenia in accelerating the factoring market formation and development processes: NFC established a subsidiary company – “URALSIB-Armfactor”, the first and the only factoring consulting company in Armenia. However, as the time showed, the activity of this company ended in fiasco.
 

In September 2007, “TDA Holdings Limited”, an affiliated company of Russian “Troika Dialog” Russian Investment Company, became the shareholder 96,15% of share holding of Armimpexbank, and increased its equity participation to 99,7% after three issuances. In June 2008, Armimpexbank was renamed into AMERIABANK. As of October 1, 2008, the total number of the Bank’s shareholders was 8, of which 3 legal entities (with total share holding of 99.87%) and 5 physical entities (with total share holding of 0.13%). On November 12, 2008, through the third issuance AMERIABANK increased its statutory capital by 1.2 bln. AMD (or USD 4 mln) totaling to AMD 18.2 bln. (or USD 61 mln), thus positioning itself in the first rank in the Armenian banking sector.

Updated 25.07.2009, 11:22
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