ArmInfo. The Eurasian Development Bank (EDB) and Gazprombank agreed to develop cooperation on banking support for contracts when implementing projects in the EDB member states. The memorandum was signed on the sidelines of the Eastern Economic Forum by Tigran Sargsyan, Vice Chairman of the EDB Management Board, and Oleg Melnikov, Executive Vice- President and Head of the Department of Banking Support for Contracts at Gazprombank.
The joint project is based on Gazprombank's Banking Support for Contracts product intended to help customers with their business objectives such as budget management and control over the targeted use of funds, implementing a risk-based approach, optimising the costs of supported projects, and enhancing the transparency of project implementation for all project participants, including the investor.
Separate project-specific accounts are opened for all participants in a supported project, including direct contractors, manufacturers, and equipment suppliers. The Bank checks each payment by project participants for compliance with the customer-set parameters. In this way, settlements become fully transparent and easily controllable for the participants and project owners, and project-related cash flows get separated from other business activities of the participants. The customer receives interactive reports on the results of banking support to monitor the progress of a project in real time, develop a database of supporting documents, and ensure financial control.
"We see high potential for cooperation in using innovative transaction products developed by Gazprombank for Eurasian counterparts. It is clear that we need additional control over the efficient and targeted use of finance allocated to the EDB-funded projects. We expect that the use of banking support for contracts will contribute to the successful implementation of projects," commented Tigran Sargsyan, Vice Chairman of the EDB Management Board.
"Engaging with leading international financial institutions is an important part of Gazprombank's business strategy for banking support for contracts. We are pleased to see that Gazprombank's role in the implementation of investment projects in the EAEU+ member states has been constantly growing, including with the technology to provide banking support for contracts we've developed," said Oleg Melnikov.
