• Bulgaria makes one more step forward in terms of development and international recognition of its financial and commercial system.

• The conditions related to foreign trade for the Bulgarian companies will be improving.

• Despite the difficulties, the past year was a good one for the market of financing trade receivables of the Bulgarian manufacturers and traders, state the experts of Unicredit Factoring.

The company for financing and management of trade receivables (factoring services) of UniCredit Group in Bulgaria – UniCredit Factoring became a full member of Factors Chain International (FCI).

This recognition, namely, to become the first Bulgarian company full member of FCI, was received by UniCredit Factoring just a few days ago, at the recent session of the Association's Management Board.

FCI MEMBERSHIP

Factors Chain International (FCI) is an established world association of first-class factoring companies and currently it has the greatest contribution in the sustaining and development of worldwide standards in the sphere of risk coverage and international factoring turnover.

With the help of modern communication systems, a reliable legal framework and standardized procedures, FCI is helping its members to facilitate the turnover of goods and services among the leading global economies.

FCI operates in 66 countries and it deals with more than 60% of the global factoring activities. „Recognizing UniCredit Factoring as a full member is an important step in incorporating Bulgaria in the global economic and commercial system. Bulgarian business will improve its international reputation and it will make use of yet better trading conditions”, commented Philip Genov, executive officer of UniCredit Factoring in Bulgaria.

According to the admission rules, each new member of FCI first gets an “associated” status. Full membership is granted at the end of the third year and only to companies, which are developing successful activities, companies providing services at the established global level, etc.

In rare cases, like with UniCredit Factoring, a company may be invited to become a full member prior to the expiry of this three-year term. Full members receive voting rights in the Council of FCI – the organization's supreme authority, which takes all important decisions.

„Through UniCredit Factoring, for the first time, a Bulgarian company will have full voting rights in the determining and management of global financial and commercial standards”, said Philip Genov.

THE FACTORING MARKET IN BULGARIA

In spite of the financial crisis, 2009 may be defined as a good year for the factoring industry in Bulgaria. According to data provided by UniCredit Factoring, the total factoring market volume in the past year amounted to approximately BGN 510 million.

„The perception of the factoring products on the part of the business sectors has improved. The business growth is due partially to the relatively more limited access to bank financing during the crisis and also to the market awareness of the benefits from the factoring services”, thinks Philip Genov.

In 2009, the companies had a considerable interest in non-recourse services with the purpose of getting loan coverage for their receivables. A marked growth is seen as regards the interest in export non-recourse factoring – the applications for this type of services have doubled compared to 2008, added Philip Genov. Despite the current market trends, domestic factoring is still a dominating product, holding around 80% of the total business volume.

Apart from UniCredit Factoring, in Bulgaria, there are another 5 major banks and companies offering this kind of services, whereas those share the remaining 30% of the total turnover of this business in the country. Three of them are associated members of FCI.

UNICREDIT FACTORING’S INTERNATIONAL ACTIVITY

UniCredit Factoring, which has the greatest market share in the factoring services in the country, started actively developing international factoring activities, as well, at the beginning of 2008.

In 2009, despite the financial crisis and the decreasing international trade volumes of Bulgaria, the company reported an increase by 114% in the total international factoring turnover, which represents around 40% of the international factoring business in Bulgaria.

Currently, UniCredit Factoring is also the only financial institution in Bulgaria, which offers risk coverage to the Bulgarian importers in relation to this type of activity.

The company is quite active in its business activities with countries, which are main trading partners of Bulgaria – Germany, Italy, Austria and the Balkan countries. The business with the Scandinavian countries is significant, too, in terms of volumes.

For contacts and further information:

UniCredit Bulbank, PR and Corporate Identity

Victoria Blazheva, Phone No 02/9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Ekaterina Ancheva, Phone No 02/9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch