OREANDA-NEWS. June 21, 2011. Sberbank of Russia and Cetelem (BNP Paribas group) have signed a non binding Memorandum of Understanding outlining major terms for the foundation of a joint Russian POS finance bank (hereinafter – the “Partnership”). The deal will result in creation of a Partnership which should be operated under Cetelem brand and Sberbank will have a majority stake.

Joining efforts of Sberbank, and Cetelem, should lead to the creation of a successful business beneficial for both parties and Russian personal finance market as a whole. The Partnership will use a concept of “responsible lending” developed by Cetelem (BNPP PF Group) and supported by Sberbank that implies providing simple and transparent client products with reasonable interest rates.

Currently, the parties are in exclusive negotiations. Execution of binding documents is scheduled for the 3rd quarter of 2011, while the Partnership’s operations are planned to start in the beginning of 2012. Cetelem and Sberbank believe that Partnership is able to become a leader at Russian POS finance market within a few years.

At the ceremony of signing, Senior vice-president of Sberbank Denis Bugrov said: “Sberbank has been interested in POS finance market for a long period. After signing of binding documents of acquisition of Troika Dialog, POS finance remained one of the few significant financial products that companies of Sberbank Group could not offer to their clients. Therefore, the creation of this Partnership is a milestone event for us that will allow completing the creation of full line of financial products within the Sberbank Group. We also believe that strengthening Cetelem position at Russian POS finance market will lead to increasing transparency for clients and, what especially important for us, expansion of responsible lending standards in Russia.

Establishing the Partnership with Cetelem is the optimal way for Sberbank to enter POS finance market. We are satisfied with the agreement with Cetelem reached so far. We believe that the partnership with BNP Personal Finance (BNP Paribas Group), such an honorable European banking institute, is a milestone for Russian banking sector.”

Alain Van Groenendael, Deputy CEO of BNP Paribas Personal Finance has also commented: “this partnership project would be perfectly in line with BNPP Personal Finance’s development strategy abroad, in countries where the backing of a leading bank group would guarantee its controlled development. This partnership would be a promising step for the development of our activity in Russia”