valuation & consulting in Russia

VALUATION Corp. provides bill valuation services in Moscow and other Russian regions

Legal circulation of bills and promissory notes in Russia is based on the old Decree of the USSR Central Executive Committee and Soviet of People's Commissars No. 104/1341 dated August 7, 1937 "On Enactment of Bill of Exchange and Promissory Note Regulations ". All bills and promissory notes issued in this country must comply with the requirements stated in the above document.

Bill is a financial instrument generating income for its holder. The principal methods of deriving income are earning interest on nominal value or purchasing a bill at a price below its nominal value.

To determine fair market value of a bill is to estimate the most probable price at which the bill will change hands on the competitive market, with both parties of transaction acting reasonably and having knowledge of all relevant facts and with no extraordinary circumstances affecting the price of transaction. In Russia, valuation can be conducted in regard to promissory notes or bills of exchange issued either by legal entities or individuals.

In the process of valuation the valuer analyses the earning capacity of the bill, current conditions on the financial market and assesses reliability of the issuer, payer and other person(-s) liable on the bill. The major difficulty in bill valuation is to estimate the discount for the risk of default or delay in payment. To do so, the valuer should analyze the issuer’s financial capacity and determines the final value with allowance for all risks on the basis of this analysis.

Documents and information required for bill valuation:

This list of documents is preliminary and may be reduced or expanded after the valuer’s detailed review of the valuation assignment, depending on the purpose of valuation.

Should you have any queries regarding bills and promissory notes valuation in Russia, please contact us.

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