Thursday, December 1 2011 17:19
Rietumu Banka in Armenia not only for capital…
ArmInfo. Rietumu Banka’s coming to the Armenian market was much spoken off in the country’s banking circles yet in the middle of the year. A few days ago, the Central Bank of Armenia licensed and registered the office of Rietumu Banka, one of the largest banks in Latvia. Now, the office of the Latvian bank is ready to fulfill its major mission i.e. connecting the local corporate and wealthy private customers with the parent bank in Riga. Rietumu Banka’s services popular in the west and new joint products with Armenian commercial banks will be available in the local market soon. Rietumu is not going to compete with the local banks agreeing on conditions of its status of a representative office. Director of Rietumu Banka Office in Armenia Hovhanness Grigoryan, an experienced specialist in the banking system, tells about specifics of the Latvian bank’s activity in Armenia in an interview with ArmInfo.
Mr. Grigoryan, Rietumu Banka’s representative offices in various countries stimulate the interest of wealthy privates to European markets, and first of all, to the Latvian bank. At present, there are enough rich people in Armenia whose plans are connected with European structures and Europe, in general. What funding streams does Rietumu Banka consider prior in Armenia?
I’d like to say, that Rietumu Banka has chosen Armenia to open a representative office in to enhance its relations with the customers in the country and regularly monitor their activity. In addition, demand in European banking services in growing in Armenia. So, the office will carry out no operations itself. It will function as a body connecting the local customers with the parent bank in Riga. The bank will select the most interesting projects of the Armenian customers and send them to the parent bank for final approval. In addition, our bank hopes to become a certain “bridge to Europe” for the local customers.
Among the key functions of the office is to conduct marketing surveys in the economy sectors the parent bank will be investing in. Shareholders are ready to invest in projects in Armenia thanks to the stable political and economic situation in the country. Thus, direct investing in the capitals of Armenian companies is one of the Latvian bank’s business lines in the country. At present, special investment policy in Armenia is currently developed in Riga. The bank may invest in the energy sector, specifically in small HPPs, as well as in mining and agriculture.
Another field of activity of Rietumu Banka in Armenia is trade finance. We take an interest mainly in the export-oriented enterprises and productions. The country’s commercial entities have already showed interest in the given service, considering that they often use 3 international maritime ports of Latvia for their freight activity: Riga, Ventspils, and Liepa. The transport and transit business is very promising in Latvia.
What will make the Latvian bank preferable for the Armenian customers that have no business ties with Latvia yet?
We will gain confidence of customers with our high quality service. Over the 20 years of its activity Rietumu Banka has been developing its policy given the fact that wealthy customers are exacting. Highly technological services of Rietumu Banka do not yield to the services of Swiss, French, German financial tycoons, but have much more competitive tariffs. We build long-term and reliable relations with our customers. We do not just provide loans. We are customer-oriented. We offer our customers a full spectrum of services: registration of a credit transaction, personal manager, an individual list of the requirement financial documents depending on a project. It is noteworthy that Rietumu Banka’s staff, starting from managers, is perceived by customers as professionals ready to consult any customer.
Rietumu Banka offers another interesting service to its customers: residence permit in Latvia after opening of a big deposit with the bank. What are the terms and conditions of the given service? Will it be in demand among wealthy Armenians?
Armenians who have business in Europe have already showed interest in the given service. Considering that Latvia is a EU member-state, a residence permit in Latvia is an opportunity of free movement in all the countries in the Schengen area for a period of 5 years. It is rather convenient for businessmen who will no longer face red tape to get standard or multi-visas. The given service includes 3 options aimed at raising investments, which is a very important factor for Latvian economy. In particular, a residence permit in Latvia will be available within a month after acquisition of real estate in the amount of 70-150,000 EUR (depending on the location). Another option to get a residence permit in Latvia is to open a 5-year subordinated deposit in the amount of at least 300,000 EUR with Rietumu Banka. It is quite convenient and will bring big interest incomes to customers. The third option is to invest at least 36,000 EUR in the capital of a Latvian company. The total profit tax of the given company for the last three years is to be at least 28,000 EUR.
By unofficial data, one of the Rietumu Banka’s subsidiaries provides services on registration and management of off-shore companies. It is not a secret that off-shore registration is popular also among Armenian companies and commercial banks. Is Rietumu Banka ready to assist Armenian companies in registration of off-shore business?
Optimization and structuring of financial flows is the personal business of every entrepreneur striving to get maximum profits within the law. In this light, Rietumu Banka plays open with its customers. The stereotype belief that Baltic banks are “washing machines” does not correspond to reality, at least, with regard to Rietumu Banka. Even opening of an account by a private with the bank is like the procedure of execution i.e. a customer is required all the documents grounding his financial flows. Rietumu Banka is dealing with big business and cares for its reputation. Nevertheless, I think, it is untimely speaking of off-shore deals so far.
Rietumu Banka has also subsidiary leasing companies in various countries. Given Rietumu’s plans of investments in various sectors of economy, including in agriculture, is it realistic creating leasing structures also in Armenia?
Rietumu leasing companies operate in Russia, Ukraine, Belarus and why not in future in Armenia?! it is a matter of time and market study. If we feel relevant necessity, we will open also a leasing company.
Latvian bank is implementing also joint projects with various banks. Do you plan any joint projects also with Armenian commercial banks?
Yes, in 2012 Rietumu Banka (Latvia) is going to launch joint projects with Armenian banks. At the initial stage we will launch a project in internet acquiring. We have already offered this project to several large commercial banks and they showed great interest in it. Development of online payments and credit cards on profitable terms will not only stimulate the growth of non-cash payments, but will also provide the customers with certain commodities, the sale of which will not need opening of a store, for instance, in Northern Avenue of Yerevan. This is a quite developed practice throughout the world, which will hopefully be demanded in
Armenia as well.
Thank you
By Lilit Aslanyan
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