Factoring training for Armenian private sector representatives | EUNewsletter

Factoring training for Armenian private sector representatives

21 February 2014
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On 11-12 February 2014 a training session entitled “Introduction to Factoring and Structuring Factoring Transactions”, funded by the EU Neighbourhood Investment Facility, was organised by the European Bank for Reconstruction and Development (EBRD) as part of its Trade Facilitation Programme (TFP).
Thirty nine representatives from nine Armenian banks and two companies participated in the seminar that was held at Hyatt Place Hotel in Yerevan.
The training course is part of a two-year factoring advisory services project, which had been designed to introduce local banks and companies to factoring and train staff to introduce it into the product ranges they offer to corporate clients. Advisory services that will be provided to selected Armenian banks and factoring companies will be tailored to the needs of each bank and factoring company to support them in building up and optimising their factoring operations.
Factoring means the purchase of accounts receivable due from third parties at a discount. It is an innovative finance product which requires specific know-how on the part of local banks and factoring companies in order to process factoring transactions.
Armenia has been developing its factoring market since 2008, and several Armenian banks offer both domestic and international factoring. Of the nine Armenian banks that took part in the training session, only six banks include factoring in their trade finance products. Two of these banks – Ameriabank and Armswissbank – are members of Factors Chain International (FCI), a global network of leading factoring companies.

Reflecting market needs in its countries of operations, the EBRD’s TFP commenced its factoring-related technical cooperation projects in January 2006. To date, projects have already been successfully implemented in Georgia, Moldova, Russia and Ukraine. Similar factoring advisory services are now being rolled out in Armenia for the first time. In Armenia, the TFP sees a high transition impact and great potential for the development of factoring. Moreover, Armenian banks have directly approached the TFP and requested this type of advisory services; this shows Armenian banks’ commitment to developing their factoring operations.

Factoring training for Armenian private sector representatives

On 11-12 February 2014 a training session entitled “Introduction to Factoring and Structuring Factoring Transactions”, funded by the EU Neighbourhood Investment Facility, was organised by the European Bank for Reconstruction and Development (EBRD) as part of its Trade Facilitation Programme (TFP). Thirty nine representatives from nine Armenian banks and two companies participated in the seminar that was held at Hyatt Place Hotel in Yerevan. The training course is part of a two-year factoring advisory services project, which had been designed to introduce local banks and companies to factoring and train staff to introduce it into the product ranges they offer to corporate clients. Advisory services that will be provided to selected Armenian banks and factoring companies will be tailored to the needs of each bank and factoring company to support them in building up and optimising their factoring operations. Factoring means the purchase of accounts receivable due from third parties at a discount. It is an innovative finance product which requires specific know-how on the part of local banks and factoring companies in order to process factoring transactions. Armenia has been developing its factoring market since 2008, and several Armenian banks offer both domestic and international factoring. Of the nine Armenian banks that took part in the training session, only six banks include factoring in their trade finance products. Two of these banks – Ameriabank and Armswissbank – are members of Factors Chain International (FCI), a global network of leading factoring companies. Reflecting market needs in its countries of operations, the EBRD’s TFP commenced its factoring-related technical cooperation projects in January 2006. To date, projects have already been successfully implemented in Georgia, Moldova, Russia and Ukraine. Similar factoring advisory services are now being rolled out in Armenia for the first time. In Armenia, the TFP sees a high transition impact and great potential for the development of factoring. Moreover, Armenian banks have directly approached the TFP and requested this type of advisory services; this shows Armenian banks’ commitment to developing their factoring operations.