VTB Bank (Armenia): things in Cyprus may drive interest rates on deposits and loans down in CIS countries

YEREVAN, April 10. /ARKA/. The current situation in Cyprus’ banking system may drive interest rates on deposits and loans down in the Commonwealth of Independent States, Yuri Gusev, CEO of VTB Bank (Armenia) and chairman of its directorial board, said today answering ARKA News Agency’s question at a news conference.

“Inflow of large depositors’ money has intensified to some extent, and I think this will produce a positive effect at micro-levels – interest rates on bank deposits are thought to go down,” he said. “This will allow banks to reconsider their lending interests, if they want, and is believed to have favorable impacts on the economy and the banking market.”

Vsevolod Smakov, vice president and chief of the international business division of Russia’s ВТБ24, on his side, said Cyprus’ banks were very popular among CIS member countries’ citizens.
“We expect no problems – we rather expect inflow of clients because of the current situation,” he said.

He said things in Cyprus are alarming, first of all for it can trigger further destabilization in the European Union’s financial and banking systems, which will strike hard at all EU countries.
In his opinion, CIS residents’ money may outflow from the EU banking markets.
It means the CIS countries’ residents may deposit their money in banks rooted in the Russian Federation.

Smakov stressed that VTB Bank and VTB Bank (Armenia) are segments of a single system of the global services provided to wealthy clients.

“In 2012, we opened a specialized office Private Banking in Yerevan and can offer good conditions to large depositors either in Armenia or all over the globe,” he said. “This instability may increase individuals’ interest in cooperation with such banks, among which is VTB Bank.”

VTB Bank Armenia (Armenian Savings Bank before June 2006) joined VTB Group in April 2004. VTB, the second largest bank of Russia, holds 100% of shares of VTB Bank (Armenia). VTB Bank (Armenia) has 69 branches all over Armenia’s territory – the largest branch network in the country. VTB Bank (Armenia) is traditionally reckoned among leaders for general indicators. –0—

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