VTB BANK (ARMENIA) HAS BECOME PARTICIPANT IN EBRD PROGRAMME ON TRADE FINANCING

ArmInfo
2009-10-13 10:15:00

ArmInfo.VTB Bank (Armenia) has become participant in the programme
of the European Bank for Development and Reconstruction (EBRD) on
trade financing.

As the bank’s press service told ArmInfo, the relevant agreement
between VTB Bank (Armenia) CJSC and EBRD was signed on September 23,
2009. Within the frames of this programme, the bank will be provided
with a revolving credit line to finance the foreign trade transactions
of the clients of VTB Bank (Armenia) CJSC through issue of letters
of credit and guarantees, as well as through direct financing.

According to the source, this programme aims at supporting the
international trade, within the frames of which EBRD issues guarantees
to international commercial banks, assuming a political risk and
a risk of commercial non-payment on the transactions, initiated by
the banks being in the list of EBRD operation-countries (including
Armenia). According to the data of "VTB Bank (Armenia)", this has been
the third programme for incomplete year of 2009 being carried out
jointly with EBRD. Moreover, in June 2009, EBRD and Vnesheconombank
State Corporation provided credit to "Electric Networks of Armenia" at
the rate of 64.5 mln Euro for 10 years. Before that, in December 2008,
EBRD provided credit to "VTB Bank (Armenia)" at the rate of $10 mln by
three tranches to credit Armenia’s small and medium entrepreneurship.

To note, VTB Bank (Armenia) takes the fourth place in Armenia’s
banking system by the size of assets and a leader by the branch network
(74 branches).