BANK VTB, BANK VTB (ARMENIA), ELECTRIC NETWORKS OF ARMENIA SIGN AGREEMENT ON LONG-TERM COOPERATION
ARKA News Agency, Armenia
June 14 2007
YEREVAN, June 14. /ARKA/. Bank VTB OJSC, Bank VTB (Armenia) CJSC and
Electric Networks of Armenia CJSC signed an agreement on long-term
cooperation in financing the projects of Electric Networks of Armenia
CJSC. The aim of the agreement is to develop competitive investment
and banking business.
The President of Bank VTB OJSC Andrey Kostin pointed out that
the cooperation is to be developed in the following directions:
financing of the investments of Electric Networks in the territory of
Armenia under the investment program approved by the Public Services
Regulating Commission of Armenia (5-8 years, with $70mln total volume
of financing), financing the circulating capital of Electric Networks
for a year period, as well as joint development and discussion of the
programs on providing complete improved package of banking services
to Electric Networks and its counteragents.
Under the agreement, Bank VTB OJSC will render methodological
assistance to Bank VTB (Armenia) CJSC. The banks will jointly develop
a mechanism for financing of the above projects of Electric Networks.
Bank VTB (Armenia) CJSC (Armsberbank before) was founded in 1923. Up to
1993 it was a member of the State Sberbank of USSR, and then it became
a specialized Sberbank of Armenia. In 2001, the bank was privatized as
Armsberbank through direct purchase by ARCH Limited (Bagamian Islands)
and MIKA Armenia Trading. In April 2004 the Russian Vneshtorgbank
purchased 70% of the shares of Armsberbank.
According to the official balance sheet data, as of March 31 2007
the total capital of Bank VTB (Armenia) made AMD9.5bln, total assets
AMD43.6bln, balance sheet profit AMD 1.6bln and the profit by the
end of 1st quarter 2007 made AMD160.2mln. By today the bank had
94 branches.
INTER RAO EES Russian company holds 100% of the shares of Electric
Networks of Armenia. The main activity of Electric Networks is
regulated distribution and sales of electricity. The company serves
approximately 913,000 consumers.