VTB Bank to offer Armenian producers loans in Russian rubles
07.08.2015,
19:46
VTB Bank intends to propose Armenian producers to shift to loans in Russian rubles, Mikhail Oseevskiy, VTB Bank deputy president and chairman of the bank’s board, said Friday at a news conference in Yerevan.
YEREVAN, August 7. /ARKA/. VTB Bank intends to propose Armenian producers to shift to loans in Russian rubles, Mikhail Oseevskiy, VTB Bank deputy president and chairman of the bank’s board, said Friday at a news conference in Yerevan.
“We see that national currencies are weakening,” he said. “This is peculiar to all developing markets. Developments in the United States have strong impacts on them. In particular, the expected increase of the key interest, which makes the dollar and its instruments more attractive, gives us grounds for thinking that national currencies will continue weakening and force us to make appropriate corrections.”
Therefore, new cooperation approaches were discussed with the managers of Armenia's central bank and government.
«The main factor here is support for Armenian producers who sell their goods and services in Russia,» Oseevskiy said. «This is our key political and economic objective within the Eurasian Economic Union.»
«Taking into account sharp foreign exchange fluctuations, we will propose Armenian producers to shift to loans in rubles to lessen currency risks. Today we see that control over the situation is increasingly becoming difficult as loans are extended in dollars, cost prices remain in drams and sales in Russia are carried out in rubles to lessen risks. For this very reason we will propose our clients to shift to a direct lending in rubles to lessen risks.»
Oseevskiy also said that formally VTB can lend money to national companies through its subsidiary in Armenia or directly from Russia.
«It is no matter where we extend the loan - in Moscow or here in Yerevan. Important is to remove cross-border currency risks,» he said. «Today we provide loans to companies in Russia in rubles at 14-15% interest rate, which is considered a quite comfortable zone. I hope the same practice will start forming also here in Armenia.»
The VTB Bank deputy head pointed out financing of investment projects as another important direction.
«We think the policy the bank run in the last years to support investment in the general capital was correct. In Armenia this is the key factor in development of business competitiveness,» he said. «We also used the potential of a number of European export and lending agencies for protecting investments and Russia's capacity first of all in food-producing segments. In the last years we actively financed greenhouse businesses, taking into account the restrictions connected with export of foods to Russia.»
Oseevskiy said that the bank will support businesses of those companies that are tuned to working in Armenia, first of all mining and processing companies. ---0-----
“We see that national currencies are weakening,” he said. “This is peculiar to all developing markets. Developments in the United States have strong impacts on them. In particular, the expected increase of the key interest, which makes the dollar and its instruments more attractive, gives us grounds for thinking that national currencies will continue weakening and force us to make appropriate corrections.”
Therefore, new cooperation approaches were discussed with the managers of Armenia's central bank and government.
«The main factor here is support for Armenian producers who sell their goods and services in Russia,» Oseevskiy said. «This is our key political and economic objective within the Eurasian Economic Union.»
«Taking into account sharp foreign exchange fluctuations, we will propose Armenian producers to shift to loans in rubles to lessen currency risks. Today we see that control over the situation is increasingly becoming difficult as loans are extended in dollars, cost prices remain in drams and sales in Russia are carried out in rubles to lessen risks. For this very reason we will propose our clients to shift to a direct lending in rubles to lessen risks.»
Oseevskiy also said that formally VTB can lend money to national companies through its subsidiary in Armenia or directly from Russia.
«It is no matter where we extend the loan - in Moscow or here in Yerevan. Important is to remove cross-border currency risks,» he said. «Today we provide loans to companies in Russia in rubles at 14-15% interest rate, which is considered a quite comfortable zone. I hope the same practice will start forming also here in Armenia.»
The VTB Bank deputy head pointed out financing of investment projects as another important direction.
«We think the policy the bank run in the last years to support investment in the general capital was correct. In Armenia this is the key factor in development of business competitiveness,» he said. «We also used the potential of a number of European export and lending agencies for protecting investments and Russia's capacity first of all in food-producing segments. In the last years we actively financed greenhouse businesses, taking into account the restrictions connected with export of foods to Russia.»
Oseevskiy said that the bank will support businesses of those companies that are tuned to working in Armenia, first of all mining and processing companies. ---0-----
