VTB BANK PLANS TO IMPLEMENT INVESTMENT PROGRAMS OF TOTAL COST OF 500 MILLION DOLLARS IN ARMENIA
Noyan Tapan
Jun 14 2007
YEREVAN, JUNE 14, NOYAN TAPAN. VTB Bank OJSC (Russia), its Armenian
branch VTB Bank-Armenia CJSC and Electric Networks of Armenia (ENA)
CJSC on June 14 signed in Yerevan an agreement on long-term cooperation
in financing of ENA’s investment projects. According to the document,
VTB Bank will finance capital investments of 70 mln USD to be made in
ENA within 5-8 years, with the respective program being approved by the
RA Public Services Regulatory Commission. Short-term financing of ENA’s
working capital will also be done during one-year period. Besides,
the sides have agreed to develop programs on provision of an improved
comprehensive package of banking services to ENA and its counteragents.
After the signing of the document, Chairman of VTB Bank board Andrey
Kostin said that 4 mln dollars will be invested with the aim of
developing the network of VTB Bank-Armenia’s branches. In his words,
investment programs to be implemented in some other sectors of the
Armenian economy are now under discussion. The total cost of these
programs makes 500 mln dollars. The return of capital may be up to
10 years. It was mentioned that VTB Bank-Armenia will increase its
retail banking services, particularly its mortgage crediting.
In the words of A. Kostin, it is planned that "VTB Bank-Armenia will
enter Armenian and foreign loan markets by issuing its bonds."
He said that capitalization of VTB Bank currently makes 35-36 billion
dollars.