VTB Bank (Armenia) has funded the construction of Progress Agro greenhouse for cucumber production that was opened in Nor Geghi village (Kotayk region) lately. President of Armenia Serzh Sargsyan attended the opening ceremony, VTB Bank (Armenia) press office told ArmInfo.
The greenhouse occupies an area of 47ha, of which 34.4 ha of the production area. Progress Agro Company cooperates with Richel Company, France, one of the world's leading companies in the field (present in 80 countries). The greenhouse is equipped with hydroponic systems that ensure year-round production of cucumbers exceeding the traditional method of cucumber growing 4-fold. The hydroponic systems allow growing plants in the natural environment. Progress Agro Company plans to supply the local market and launch large-scale export to Russia.
"We assign a high importance to financing of the export-oriented companies in Armenia. It is our first project with Progress Agro. I think, the company will have an opportunity to take leadership positions in the market, and the climatic and economic conditions will contribute to it. Opening of the greenhouse facility will become an additional impetus to the development of the given sector in the country and the employment scales," says Yuri Gusev, Director General - Chairman of the Board at VTB Bank (Armenia) CJSC. "We are producing cucumbers hydroponically - it is a rare method in Armenia. It will help us receive crops several times as frequently as usually, and increase exports. We hope for continuous fruitful cooperation with VTB Bank (Armenia)," says Ashot Shagyan, Director of Progress Agro LLC. He said the company owes 50ha of lands, but the greenhouse facilities occupy only 4.36ha so far ($7 million were invested). Another 16 ha will be used for greenhouse facilities by the end of the year, he said. "So far, the company will be producing cucumbers only. 90%-95% of the production will be exported to Russia. It is anticipated that the production per sq m will total 55-60kg of cucumbers or 2.6 thousand tons annually," Shagyan said.
According to ArmInfo's Financial Rating of the Armenian Banks, as of April 1 2015, the loan portfolio of VTB Bank (Armenia) is over 223 billion drams (nearly 70% of the bank's assets) - the bank retains its position among TOP-3 banks. Business loans account for about 60% of total. In terms of the agricultural and construction loans, the bank is among TOP-3 banks too.
VTB Bank (Armenia) joined VTB Group in April 2004 and is fully owned by VTB Bank OJSC, the second biggest bank in Russia. VTB Bank (Armenia) is one of the leaders of Armenia's banking sector. It has 67 branches all over the country (the largest branch network in Armenia).
As of May 13 2015, the greenhouse facilities in Armenia occupy an area of 760ha, of which 80ha use high technologies. In 2015, 36ha of new greenhouse facilitiew will be built in the country.