VTB Bank (Armenia): "Shutdown of our affiliate in Khankendi is not politically motivated"

"The bank is dealing with optimization of the affiliate network, which envisions issues of qualitative and economically profitable services in our affiliates and we have primordially stressed the plans to reduce the number of affiliates", noted Ovsyannikov.

He said as of beginning of 2007 the bank had 100 affiliates and in line with the optimization plan their number by the end of 2008 should be reduced to 75.

"The list of the affiliates also included Stepanakert (Khankendi - Day.Az), yet it is not politically motivated and it is just an economic process, ongoing in our bank and we close those affiliates which are economically inexpedient for functioning", said the banker.

Ovsyannikov noted that the bank does not leave the regions and will continue financing interesting programs and customers, yet it will be conducted directly from Yerevan or nearby regional affiliates.

"Optimization will cause no damage to the customers, an affiliate of another bank will be opened on the basis of our affiliate in Stepanakert (Khankendi - Day.Az) and customers will get full support and provided with all services", said Ovsyannikov adding that the bank will be present in the economic area of the "Nagorno Karabakh Republic".

He said in case of economic expedience, the activity of the affiliate in Khankendi will be restored.

The optimization process is caused by the increase of effectiveness of the work of territorial divisions and the bank in connection with which the observation council of the VTB Bank decided to open affiliates in Nor-Abcha, Egvard, Metsamor, Ashotske, including the affiliate in Khankendi.

It is planning to bring the number of the bank's affiliates to 75 units, including 41 universal (11 in Yerevan and 30 in the regions) and 34 mini affiliates (20 in Yerevan and 14 in the regions) by late 2008-early 2009.

VTB Bank Armenia (Armsberbank until June 20 of 2006) became a part of the VTB group in April of 2004. Currently VTB owns 100% stock in VTB Bank (Armenia).

The founding capital of VTB Bank (Armenia) is 13.9 bln drams, its authorized capital reached 22.8 bln drams as of September of 2008.  The bank is among the top three biggest banks of Armenia for its main indicators and it is leading by the number of assets ($1-301.11 drams).

The regional network of the Armenian bank accounts for 80 sale points in all the regions of the country. International Fitch Ratings granted short-term B issuer rating and long-term BB+ issuer rating to the bank in July of 2008. The long-term forecast is "Stable".

/ARKA/