Deputy President of VTB Bank Mikhail Ossevskiy discussed with the Armenian government, Central Bank and private business representatives the prospect of lending in Russian rubles.

Mikhail Ossevskiy said this at a press breakfast in Yerevan today.

“National currencies weaken and the situation requires adjustment of approaches. We have discussed with the government and CB of Armenia the possible measures due to be taken to reduce currency risks for Armenian exporters. They’re now faced with quite a tough situation: they borrow in dollars, get income in drams and export for rubles. Naturally, in conditions of national currency fluctuations, a serious misbalance is created. We think if our partners take loans in Russian rubles it will allow them to considerably reduce their risks”, said the VTB top manager.

“We think one should avoid currency dependence, and further reduction of rates can be one of the steps to this end. At the same time, obviously it’s a long-lasting process”, noted
Deputy President of Management Board of VTB Bank.

He has also said that the bank is ready to consider the options of supporting Armenian companies operating on the markets of EEU countries. “In particular, if Armenian companies work on Kazakhstan and Belarus markets we are ready to work with them in corresponding national currencies”, said Mikhail Ossevskiy.

VTB Bank (Armenia) will continue supporting investment projects, particularly in agriculture, greenhouse farms, mining industries, said Ossevskiy.

The Supervisory Council of VTB will consider a new strategy for Armenia in September, which will take into account integration processes within Eurasian Economic Union as well.

Speaking about the possible prospects of expanding the volumes of lending in Armenia, Mikhail Ossevskiy noted that much will depend on the areas where the Armenian economy will develop. Attracting capitals from the Armenian Diaspora representatives can be an extra resource, he noted.

“Traditionally, we support the construction sector in Armenia which is experiencing a slowdown now. Of course, we’re not happy about it. We are ready to demonstrate a flexible and creative approach and seek new sectors to assist”, said Mikhail Ossevskiy.

On the whole, he positively assessed the bank’s operation in Armenia both in corporate and retail segments recalling that the assets of VTB Bank (Armenia) exceed USD700mln.