ArmInfo. Armenian Ministry of Agriculture is working with commercial banks on introducing factoring for prompt repayment of debts to farmers, Minister of Agriculture Ignatiy Arakelyan informed after today's session of government.
According to the Minister negotiations are being held with ACBA-Credit Agricole Bank on signing relevant factoring agreement on account of future sale of alcohol. "The bank has agreed but in order to launch the process relevant reliable companies should be attracted", he stated. "The remaining debtors promised to pay the debts themselves", Arakelyan summarized.
To note, the total debt of Armenia's processing plants to farmer enterprises for purchased grape totals 500 mln drams as of today. The plants have purchased grape amounted to 31.5 bln drams.
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%. ACBA-Credit Agricole Bank holds leadership on the factoring market ensuring 8.4 bln drams as of July 1 with 12% y-o-y growth. The share of factoring in its loan portfolio totals 4%, while the share of the bank in total factoring portfolio of the banks is 33%. Only 7 banks out of running 19 conduct factoring: ACBA-Credit Agricole Bank, VTB Bank (Armenia), Ameriabank, Armbusinessbank, ArmSwissbank, Artsakhbank and Converse Bank. 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".