Over the past six years, Armenia’s economy has been booming. It sports one of the best legislative bases in the Commonwealth of Independent States, and enjoys a regular stream of money sent home by an army of Armenians working abroad. Largely ignored by foreign investors until now, Russia’s VTB Bank made the first in what could be a set of acquisitions by taking 100% control of CJSC Armsberbank, now CJSC VTB Bank (Armenia), in the last week of July.
Several big foreign banks are circling the republic, tempted by the dirt cheap prices for acquisitions. VTB was among the first in when it bought a 70% plus one share in CJSC Armsberbank in 2004 and now plans to double the bank’s charter capital from the current $21.9m.
