Dejan Vukotić, Director General AOFI: Ensured liquidity and business continuity

AOFI follows banking principles prescribed by the National Bank of Serbia (NBS). Our biggest comparative advantage over banks is the speed and ability to provide a one-stop-shop service.

In his interview for Diplomacy&Commerce, Dejan Vukotić, Director General of the Serbian Export Credit and Insurance Agency j.s.c. (AOFI), talks about terms and conditions of AOFI’s financial assistance, the Agency’s loans and helping the entrepreneurial activities of the Roma population.

Dejan Vukotić, Director General the Serbian Export Credit and Insurance Agency j.s.c.

 

What prerequisites must companies meet to count on AOFI’s assistance? 

AOFI provides export insurance and financing services. In the case of export insurance, the only prerequisite is that a company must have foreign receivables. If our clients want to use our lending, guarantee-related and factoring services, they must meet these four conditions:

  • exported goods in the amount of at least 100,000 euros during the previous business year or a proportional amount in the current business year
  • having an export contract that is the subject of financing
  • net profit in the previous business year and
  • all relevant taxes paid.

Among other things, the Agency also approves loans to export-oriented companies. What is the difference between loans granted by commercial banks and those by the Agency?

AOFI follows banking principles prescribed by the National Bank of Serbia (NBS). Our biggest comparative advantage over banks is the speed and ability to provide a one-stop-shop service, which in addition to lending, allows our customers to insure their receivables, which in turn, gives them security in payment and thus certain liquidity and business continuity.

To what extent is factoring used in practice in our country, considering it’s a relatively new way to turnover financial assets?

Factoring is a relatively new product on the financial market and as such, is not overrepresented. AOFI is trying to promote non-recourse factoring with insurance that, in addition to securing the collection of receivables, provides better liquidity for our clients. In 2021, in cooperation with Banca Intesa, AOFI provided insurance services for the bank’s export factoring portfolio, which I consider another good step in promoting factoring as an alternative source of financing.

In what way and from which potential risks are companies protected by activating insurance of their receivables?

AOFI insures the collection of receivables against non-payment risk. The risk of non-payment in commercial risk insurance is used in two cases – the bankruptcy of a foreign client or extended non-payment of receivables.


“In 2021, in cooperation with Banca Intesa, AOFI provided insurance services for the bank’s export factoring portfolio, which I consider another good step in promoting factoring as an alternative source of financing”


In the case of insurance against political/non-commercial risks, among other things, risk can arise in the following cases – a moratorium on foreign payments, ban on currency conversion and other cases in which the regulator in the client’s country hinders or prohibits payments abroad.

Last year, the Serbian government approved funds for the promotion of small business owners that come from the Roma population. How interested were the members of the Roma community in these funds?

The interest in this government’s programme does exist. In cooperation with the Poštanska Štedionica Bank, AOFI will continue implementing this programme in 2022 when we expect to grant a number of loans to small business owners from the Roma community.

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