PJSC “Rosseti”, the Association of Factoring Companies (AFC) and JSC “SME Bank” signed a tripartite agreement aimed at expanding the access of small- and medium-sized enterprises to assignment credit in the performance of contracts as provided by Federal Law No 223-FL, “On Purchases of Goods, Works and Other Services by Certain Categories of Legal Entities”. The law was passed on July 18, 2011.
The agreement allows for exchanging information, creating and using specialised programs/products to provide financial and non-financial support for small- and medium-sized businesses in accordance with the 223-FL .
Any AFC member is free to join the agreement. By cooperation under this document’s policy the AFC members can be subject to assignment credit for SME units executing contracts with PJSC “Rosseti” under the 223-FL . SME Bank ensures access of AFC members to loan resources and provides warranty cover instruments for SME units.
This agreement is unprecedented in Russia's business practice and it is a practical execution of Russia's Government Directive No 7704p-P13 dated October 11, 2016, the 2030 Strategy for the Development of Small- and Medium-Sized Entrepreneurship in the Russian Federation (approved by Russia's Government Resolution No 1083-р dated June 2, 2016), as well as a number of work flow charts approved by Russian Government in 2016.