Bank VTB Armenia is to merge with VTB
Leasing within a month, it has been reported.

Mher Grigorian, deputy CEO of Bank VTB
Armenia, is said to have made the announcement that the bank will
handle all transactions Russian lessor VTB was planning to carry
out in Armenia at a news conference this month.

He added that “the cost of money and
profitability of capital” were the drivers behind the decision to
do business as one entity. He also said the restructured large
companies are getting increasingly reluctant to work with

Grigorian added that the bank extended
€19.5m in mortgage loans in the first quarter of 2010, down from
€33.5m last year.

Bank VTB Armenia is owned fully by
Russian VTB Group.