Reasons, why our clients prefer Trust transactions

1. If some enterprise within a holding intends to invest or lend funds to another affiliated company, - it is quite simple by means of Trust transaction. Investor puts his funds under the Trust management stipulating that the funds are granted as a loan to a certain company. This kind of Trust deal is popular with international holdings, e.g., in case when a holding company, registered in Ukraine, wishes to get financing from another company, registered outside Ukraine. The procedure of the Trust transaction is quick, easy and flexible with no bureaucratic barriers.

Advantages of a Trust transaction:

quick transaction processing;
facilitated settlement of formalities;
higher security level.

2. Owner wants to invest his own private funds in his company to purchase real estate. If investor invests his own funds in the share capital of the company, the value of the enterprise increases and its shares may turn into a dreamboat for unfair dealers.Using our Bank' s Trust Transaction, the real estate will be paid for by the Bank' s loan funds. Our Russian clients prefer Trust transaction of this kind.

Advantages of a Trust transaction:

higher level of legal security of real estate;
enterprise works with loan funds, rather than capital investment.

3. Private person wishes to lend money to another private person (business partners, colleagues, good friends). Investor transfers his funds to the Bank stating the purpose to grant a loan for a certain person and to require certain security.

Advantages of a Trust transaction:

lender lowers his credit risk as the Bank completes loan documentation and administrates the loan;
lender and borrower do not have to intercommunicate on the subject of loan repayment.

Trust Operations Group
phone + 371 6 701 0966, +371 6 701 0504
e-mail: trust@citadele.lv

Frequently asked questions