Friday, November 5 2010 10:42
Ameribank presents innovative trade financing instruments
ArmInfo. Ameriabank has presented two innovative trade financing instruments: "classical" factoring and delivery order financing (DOF).
The DOF and factoring contracts are regarded as a security and require no security in the form of real estate or any other physical asset, the head of the Corporate Banking Department of Ameriabank Levon Arevshatyan said while presenting the products.
The bank expects that by the end of this year the amount of DOF and factoring transactions will total $2-3mln.
DOF loans allow suppliers to enlarge their orders as the bank takes their current expenses for producing the goods or providing the services. The period of the loan is 180 days, the interest - 16%, the size - 75% of the amount specified by the contract. This will also spare suppliers the effort to plan overhead expenses.
In case of classical factroring, the bank pays for the services and the goods and acts as a creditor for the buyer. The period of the factoring contract is 120 days, the interest - 14%, the maximum size - $200,000. Ameriabank is ready to buy the monetary claims of suppliers to the 11 companies listed on the bank's web-site.
When providing both services the bank will assess the credit histories of both contracting parties and their solvency.
According to the Ranking of the Commercial Banks of Armenia prepared by the Agency of Rating Marketing Information (ArmInfo), Oct 1 2009 the assets of Ameribank totalled 93bln AMD (7th place in Armenia's banking system), of which 48.6% were loans. The amount of time deposits totalled 43.5bln AMD or over 60% of the total liabilities (3rd place). In Jan-Sept 2009 the net profit of the bank totalled 1.1bln AMD (3rd place). Sept 30 2010 the amount of factoring transactions totalled 140mln AMD.
Active consumer lending causes double-digit growth in bad loans 
Luys Foundation: Armenian government continues to face challenges in budget planning
Armenia`s brandy and winemaking industry in crisis - economist 
Even at embryonic stage, powerful impetus given to economic activity in energy sector - ENA acting manager 
Armenian NA OKs ENA nationalization 
China preparing to open new chapter of One Belt, One Road initiative with involvement of Armenia - diplomat 
The Merger between "Ardshinbank" CJSC and "Ardshininvestbank" CJSC Has Been Completed
Ticket packets 1.2% of total number of transport tickets in Yerevan