RIA Novosti, Russia
2005-03-30 22:57
VTB BOSS
DENIES TALKS TO SELL STOCK WEST
MOSCOW, March 30 (RIA Novosti) – The Vneshtorgbank, or VTB, is not currently
engaged in stock negotiations with Western bidders, Andrei Kostin, bank
president, said to a news conference. The EBRD-European Bank for
Reconstruction and Development-and the International Finance Corporation
were previously expected to purchase a block each.
VTB-EBRD talks were suspended this month, and no encouragement to resume
them has come from the federal Cabinet for now, said Mr. Kostin.
The appearance of new holders is no cure-all. Sufficient capital is what
matters most. “The VTB is efficient enough as it is,” he remarked. More than
99 per cent VTB stock is government-held for today.
Even if a resolution is made to privatize the bank through public share
placement, that will not be done overnight. “The matter has not gotten on a
practical footing for now, and will not, in the near future,” stressed the
VTB president.
The VTB is engaged in reverse transactions-to buy Central Bank stock in
Russia’s overseas banks. These deals may come to a successful end within the
year, he added.
The National Banking Council determined, toward last year’s end, to sell
Central Bank-held stock of such banks to the VTB. The Vneshtorgbank has for
now met in talks with the host countries’ supervisory agencies. Germany’s
and Singapore agencies did not demand the deals coordinated with them, so
the acquisitions will be quite quick, said Mr. Kostin.
As for the UK and France, an understanding has been made with those
countries to submit all necessary papers before April’s end, so as to obtain
an authorization within next summer, and finish the deals before this year
ends.
Mr. Kostin views the CIS market as top priority in VTB activities outside
Russia. The VTB has every chance to dominate it-that is what makes the
post-Soviet market so attractive. Last but not least, the VTB sees every
support from other Commonwealth countries’ top.
Last year and at this year’s start, the VTB purchased control blocks of the
Armenian Savings Bank and the United Georgian Bank. It also registered a
Ukrainian-based affiliate, January last, and now intends to purchase another
bank in Ukraine.
The Vneshtorgbank also has prospects to establish an affiliated bank in
Angola, where a Russian diamond-mining company is doing well. “We’ll be
following our clients,” remarked the bank president.
As for starting East European branches, the VTB is not nursing any such
plans. “I don’t quite see what we can do in Eastern Europe, and we have no
intentions for the region,” he said.