VTB plans to up Armsberbank’s charter capital to $15 mln

Prime-Tass English-language Business Newswire
March 25, 2004

VTB plans to up Armsberbank’s charter capital to $15 mln

YEREVAN, Mar 25 (Prime-Tass) — Major state-owned Russian bank
Vneshtorgbank (VTB) plans to increase the charter capital of
Armenia’s savings bank Armsberbank to U.S. USD 15 million from the
current USD 5 million, VTB’s President Andrei Kostin said Thursday.

Earlier this week, VTB finalized the deal to purchase a 70% stake in
Armsberbank, one of the largest in the country.

Up until then, the bank was fully owned by the MIKA Armenia Trading
company.

The purchase came as a planned step in the implementation of VTB’s
development program, which envisages the creation of a subsidiary
chain in Europe and the CIS.

Armsberbank, with its broad chain of branches and developed client
base, including small and middle-sized businesses, will serve as a
starting point for VTB’s further expansion to Armenia’s banking
sector.

As of end-September, 2003, Armsberbank’s own capital totaled 2.652
billion drams, and pre-tax profit amounted to 181.1 million drams in
January-September. (561.62 drams – U.S. USD 1) End