ArmInfo. Ameriabank under cooperation agreement with Export Insurance Agency of Armenia will provide factoring finance to exporters. On October 28 Ameriabank and Export Insurance Agency of Armenia signed a cooperation agreement, the press- service of the Bank informs. The aim of the agreement is to insure Armenian exporters against non-payment on the part of partners due to trade and political risks. Under the new scheme, while using factoring services exporters not just get payment for their goods in advance and are thus able to increase their cash turnover, but are hedged against possible non-payment on the part of buyers. Providing factoring finance in the currency of export contract helps to neutralize possible adverse impacts of exchange rate fluctuations.
Artak Hanesyan, Chairman of the Management Board-General Director of Ameriabank, said: "Ameriabank is very active in factoring operations, with a more than 49 billion USD factoring portfolio over the 9 months of 2016. Export factoring amounts to about 80% of our factoring deals. This agreement enables us to streamline factoring finance and hedge its risks and in the long-run will help boost Armenian exports and bring more money into the country".
Vazgen Abgaryan, Chairman of the Management Board and CEO of Export Insurance Agency of Armenia, said: "Due to collaboration with Ameriabank the users of our services will be able to manage their working capital more effectively during the deferred payment period following export. They will be able to increase their production and expand to new markets, now they are properly insured against non-payment risks".
According to Financial Ranking of Armenian Banks prepared by ArmInfo occasional banks are conducting factoring transactions, the aggregate amount of factoring portfolio of which totals only 25.3 bln drams as of July 1 2016, which slightly exceeds 1% in total loan portfolio of the banking system. In year-over-year terms the aggregate amount of factoring transactions of the banks increased by 27%. Only 7 banks out of running 19 conduct factoring: ACBA-Credit Agricole Bank, VTB Bank (Armenia), Ameriabank, Armbusinessbank, ArmSwissbank, Artsakhbank and Converse Bank. In total factoring porfolio of the banks the share of Ameriabank made 26.6% as of July 1 2016. In overall factoring market is not much developed in the country and long-lasting efforts of creating factoring companies in Armenia have been crowned with success quite recently. Particularly, in August 2016 the Central Bank has registered new universal credit company "First Factoring Company".
