VTB Bank to keep actively funding investment projects in Armenia

VTB Bank considers active funding of investment projects a very important direction of its policy in Armenia, Deputy President and Deputy Chairman of VTB Bank Management Board Mikhail Oseevskiy told reporters in Yerevan. "Over the past few years, we have been conducting a policy aimed at supporting investments in the capital stock in Armenia. This is the key to development of competitiveness of the Armenian business," he stressed. According to him, the matter concerns the business segments focused on Russia and EEU countries. One of the main sectors is the 

food industry. "Over the past few years we have been active in financing the greenhouse facilities in Armenia, horticulturism and flower growing," he said. 

 

When asked by ArmInfo about the efficiency of lending to greenhouse facilities as an intensively developing section in Armenia, Oseevskiy pointed out that Armenia has an immense potential to develop this segment of economy due to its climate and water. "Given that the Russian sales market is located not far from Armenia and taking into account the regime of close economic integration with Russia, Armenia is able to successfully compete with many countries in production and supply of agricultural products. Even if Armenia builds large greenhouses throughout its territory, the production output will be quite digestible on the immense Russian market," said Oseevskiy. 

 

In the meantime, he stressed that within the frames of its new business development strategy the Bank will keep actively supporting the entire complex of the Russian businesses working in Armenia, including the companies engaged in the mining industry. "Armenia has large projects that have intensively been funded by the Bank. Despite the difficulties on the global metallurgy market, downturn is always followed by growth," he said. 

 

To note, Oseevskiy has visited Armenia to hold consultations with the Armenian Government and the CBA on elaboration of a strategy of the Bank's further activities in Armenia. In September 2015, the strategy will be submitted for discussion of VTB Group's Supervisory Council headed by Russian Minister of Economic Development Alexei Ukyukayev. Within the frames of the new strategy, VTB Bank considers the possibility of ruble lending to the Armenian companies working on the Russian market."We see that it is difficult to control the situation when the loan is provided in USD terms, the prime cost of the goods is formed in AMD and the goods are sold in Russia in RUR terms. So, we will offer our Armenian customers to borrow RUR loans to considerably reduce the currency risks," said Oseevskiy. 

 

According to the Financial Rating of Armenian Banks by the Agency of Rating Marketing Information (ArmInfo), as of 1 July 2015 the corporate loan portfolio of VTB Bank (Armenia) totaled 131.3 bln AMD, 

total loan book - 214.8 bln AMD. In the corporate loan portfolio of the Bank, the share of trade was over 17%, industry - 16%, construction - about 9%, agriculture - over 7%. SME lending made up 46% of the loan book. As of 1 July 2015, the total assets of the Bank amounted to 316.6 bln AMD.