YEREVAN, DECEMBER 10, NOYAN TAPAN. The leasing agreement signed previously between Armavia airline and VTB Bank is being implemented. Thanks to the implementation of this 55-60 million-dollar agreement, Armavia will purchase two SSJ 100 planes of Russian production in 2008, and it will be the first part of the program on replenishment of Armavia's fleet, the chairman of VTB Bank Andrey Kostin stated on December 8. According to him, the bank envisages to open a subsidiary - VTB Leasing Armenia company in Armenia in 2008. In addition to leasing deals, the subsidiary will implement other leasing programs on import of machinery and equipment from Russia to Armenia. Speaking about activities of VTB Armenia Bank, which is a member of VTB Group, A. Kostin said that this bank is developing successfully. "The bank strives to hold leading positions in Armenia's banking sector. We realize that we purchased in time one of the leading banking institutions of the country - Armsavingsbank, and the activities of VTB Armenia should correspond to the role of a leader," he pointed out. In the words of A. Kostin, recently VTB Bank replenished the authorized capital of VTB Armenia with 20 million dollars, and VTB Armenia has become the second largest bank in Armenia by the amount of the authorized capital, which now makes 52 million dollars. Work is being done to modernize the Yerevan and regional offices of the bank, which will allow it to provide services in line with international standards. VTB Armenia Bank currently has 89 branchehs and it plans to increase services on crediting of retail trade and small business. The credit portfolio of VTB Armenia Bank now makes about 110 million dollars, its assets amount to over 190 million dollars (3rd or 4th place in the banking system of the Republic of Armenia). It is envisaged that about 70 million dollars will be provided to Electric Networks of Armenia (ENA) company in the near future. It was stated that VTB Bank and the European Bank for Reconstruction and Development (EBRD) intend to sign soon an agreement on implementing a microcrediting program in Armenia from the first quarter of 2008. It is also envisaged that EBRD will allocate resources to VTB Bank for a mortgage crediting program in Armenia. Besides, the opportunities of VTB Group's European banks will be used for pre-export financing of Armenian companies. In the opinion of A. Kostin, the investment environment is favorable in Armenia. "We do not see political risks related to investments," he stated, explaining that quite a serious financial and banking crisis has begun in the world, with the liquidity being restricted and prices of credit resources rising in the international financial market - due to the problems encountered by, first of all, the financial sectors of the US and Western Europe. Nevertheless, in his opinion, Armenia and Russia remain countries with a favorable economic environment. At the same time, according to him, Armenia's banking system is notable for its legislative regulation, liberalization, equal working conditions and a high degree of trust, which is evidenced by inflow of German, British and French banking capital to the Armenian market of banking services.

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