OREANDA-NEWS. The first amongst banks, the Bank of Moscow has completed the procedures for integration with the automated system developed by the UETF to maintain the voluntary register of the issued bank guarantees.

Making a voluntary bank guarantee register on the basis of the Unified Electronic Trading Facility (UETF) has been initiated by the Competitive Policy Department of Moscow. The purpose of the register is to reduce the number of fake bank guarantees issued for the benefit of public procurement authorities or budgetary organisations of Moscow within the scope of Federal Law No. 94-ФЗ dated 21 June 2005 "On Allocation of Orders for the Supply of Goods, Performance of Work, Provision of Services for State and Municipal Needs".

The register is free for underwriting banks, suppliers and public procurement authorities. It is completely integrated with the electronic government ordering system of Moscow and permits to enter the basic parameters of the issued bank guarantee and check its authenticity online. Today participants in a government order enter guarantees in the register voluntarily. So far the register has been used by companies operating in Moscow and Moscow Area but in the mid-run they will be joined by organisations and banks from other regions.

"The Bank of Moscow supports the initiative of the Moscow Government aimed at making a voluntary register of bank guarantees. We are sure that this service will work for the benefit of all the participants in government orders and, what’s more important, will help solve the problem of fake bank guarantees" commented Alexander Yashnik, Senior Vice President and Director of the Financial Institution and Commercial Financing Department of the Bank of Moscow.

The results of the first six months of 2013 show that about 130 billion RUR worth of guarantees of the Bank of Moscow have been extended to support the obligations under contracts concluded under Law No. 94-FL. By the end of the year the number of issued guarantees will increase by 50—60%.