Monday, June 7 2010 17:51

ArmInfo. The Central Bank of Armenia is currently developing a new project: issue of native gold bullion bars with low face value that will be accessible to broad sections of the population via commercial banks. Mher Grigoryan, Deputy Director General, a member of Director of VTB Bank (Armenia), made such statement to ArmInfo on Monday.

"I think that additional instruments for investment are necessary at present. We will add this component to our product line immediately. These will be metal accounts, purchase and same of precious metal. As far as I know the Central Bank will offer also 5g bullion bars," Grigoryan said. He believes that the new project of the Central Bank will become a good alternative of currency and will allow neutralizing "dollar concentration." Thus, Grigoryan said, both banks and customers will have a bigger choice of savings instruments. "There are few alternatives at present. Savings products are only dram, dollar and euro and the product line needs diversification, indeed. In future, a united savings product may be offered, for
instance, gold and dollar or gold and dram," he said.

As regards legislative restrictions on import of bars of lower size, M. Grigoryan said that Article 3 point 4 of the Armenian Law On Currency Regulation and Control says that standard gold bullions of lower size are not bank gold and VAT is levied on the sales of such products.

To recall, starting the year 2010, VTB Bank (Armenia) is expected to import a not large volume of gold bullions to satisfy demand which was revealed after relevant market analysis conducted by the bank's treasury board. The sales price of the gold will depend on the world prices, transportation costs, VAT and anticipated profits.

The sole owner of VTB Bank (Armenia) CJSC is the Russian VTB Bank OJSC.