YEREVAN, March 21. / ARKA /. Bank VTB (Armenia) and the South Caucasus Railways that runs Armenia’s railroads, have signed a factoring cooperation agreement. According to a Bank VTB (Armenia) press release, the new factoring product, developed after a through analysis of the railway’s needs is unique with no analogues in the country.

According to the press release, factoring limits will be opened for the railway’s clients to finance not only their transportation expenses, but also other concomitant services of the South Caucasus Railways, like forwarding, which is a new service for customers.

The essence of this new adapted product is that the South Caucasus Railways gets the opportunity to offer its services to local companies at more profitable terms with payment delay and a flexible discount system.

‘Bank VTB (Armenia) has always regarded the South Caucasus Railways as a strategic partner. In this sense a joint promotion of its services at the local transportation market is evidence of high level of our partnership relations,’ VTB Bank (Armenia) CEO, Valery Ovsyanikov, was quoted as saying.

South Caucasus Railways CEO, Shevket Shaidulin, was quoted as saying that the agreement is yet another step towards winning Armenia’s transport market.

The South Caucasus Railways is run by Russian Railways. The concessional agreement was concluded in 2008 for 30 years, with a right of extension for another 20 years after the first 20 years of operation.

Bank VTB (Armenia) is owned fully by Russian Bank VTB. It runs 68 branches in Armenia, the largest network of branches across the country.  -0