The memorandum was signed on November 19, 2008, in the framework of official negotiations between the President of Russia Dmitry Medvedev and President of the Republic of Cyprus Dimitris Christofias. The memorandum on cooperation between UNIASTRUM BANK and the Bank of Cyprus Group provides for roll-out of a joint program of lending to SMEs in the Russian territory to the total amount of RUR 15 bln. and planned for three years (2009-2011).

The Parties highlighted the importance of small and middle-sized businesses for the Russian economy in terms of contribution of these businesses to the gross national product, potential to create new jobs and business innovations. A high level of development of small businesses is a pre-condition of successful operation of a market economy. The small and middle-sized businesses represent one of the key parameters of the economic growth rate, structure and quality of the gross national product.

UNIASTRUM BANK and the Bank of Cyprus declared their willingness to allocate in 2009-2011 over RUR 15 bln. (EUR 405 mln.) in the framework of the Program of lending and supply of other financial services to SMEs in the Russian Federation territory. The Parties state that issue of loans and supply of other financial services in the framework of this Program will be organized in all the 220 outlets of UNIASTRUM BANK operating in 45 regions of the Russian Federation. In compliance with the SME Lending Program UNIASTRUM BANK will focus on enterprises engaged in the following real economy sectors: in the scientific & technical sphere, industry, construction, agriculture, healthcare, social services, education, utilities infrastructure, etc.

“The Bank of Cyprus gives a high assessment to the prospects of growth and development of SMEs in the Russian Federation, as well as to the increased efficiency of the pursued governmental policy, is mentioned in the joint memorandum signed by the Chairman of the Board of Directors of the Bank of Cyprus Group Theodoros Aristodemou and President of UNIASTRUM BANK Gagik Zakarian. In the framework of the international selective expansion of the strategy, the Bank of Cyprus received the controlling stake of UNIASTRUM BANK to strengthen its position in the banking market. The Bank of Cyprus is ready to provide a financial, technological, organizational and methodological support to help UNIASTRUM BANK to expand lending to SMEs in the Russian Federation territory. All the more so, as UNIASTRUM BANK is actively involved in various governmental and nongovernmental programs of SME support and lending in Russia in the course of its normal course of business aimed at expansion of its client base”.

“We will make our best efforts so that UNIASTRUM BANK could be a leader in the SME lending market, specifically, due to its well-developed network of branches: the President of UNIASTRUM BANK Gagik Zakarian stated. The Program will also be aimed at reduction of loan interest rates, extension of lending periods, simplification of the loan disbursement procedure. We are intending to launch new products for SMEs (leasing, factoring, bank guarantees etc.)”.

The Bank of Cyprus Group is a big international holding structure established in 1899. It has had a history exceeding one hundred years and is the leading Cypriot banking and financial services group (the bank’s share in the internal banking market of Cyprus constituted 30.2% of the total amount of deposits and 29.2% of the total amount of issued loans). At present the Group operates through a total of 335 banking outlets, 143 of which are located in Cyprus, 145 in Greece, 5 in the United Kingdom, 10 in Australia, 1 in the Channel Islands, 4 in Romania, 1 in Russia, and 26 in Ukraine. The Group also has representation in Canada and Republic of South Africa.

For additional information
please contact Ms. Olga Kurganova,
tel. +7 (495) 783 58 10 ext. 1066
kurganova@uniastrum.com