Even though Moscow is regarded as a financial center, the underlying infrastructure of the sector is far from adequate.

I would venture to claim that the level of service in Armenia’s banking sector is better that Moscow’s. This is especially true regarding ATM’s (automated teller machines).

In Moscow, you need to search high and low for an ATM that works 24 hours a day, while in Armenia such services are par for the course.

90% of the ATM’s in Moscow are located within large commercial networks or in bank branches. That’s to say in the best case scenario, ATM’s are only available from 9aqm to 7 or 8pm.

It is argued that the reason for this is due to the many cases of theft and vandalism of Moscow ATM’s. There have been cases when ATM’s have been ripped out of the wall after being tied to a truck with a strong cable. Such thefts are conducted in a matter of two or three minutes. Russian police have yet failed to catch any of the perpetrators. In many cases, law enforcement officials turn a blind eye and don’t follow up because influential criminal gangs are often the perps.

To foil such brazen thefts, banks and supermarkets install the ATM’s inside. But this too creates problems. Many Russians avoid using ATM cards, regarding them as less than trustworthy means of payment. Except for the larger commercial networks, ATM’s aren’t regarded as a means of payment for other institution. Some bank branches even do not permit money transfers via ATM’s. They simply say such as service doesn’t exist.

Most ATM’s even restrict the amount of cash that can be issued; usually around US$300.

All of this is a big inconvenience for foreign tourists arriving in the Russian capital. In truth, Armenia’s banking sector is way ahead both in terms of quality and offering a range of services.

Nevertheless, Moscow banks possess one great advantage. They offer on-line loans without collateral and without additional fuss. Loans rates hover between 13% and 14%.

Mortgage loan rates are from 9-12% annually (15-20% for USD loans). Business loans are granted on a much more simplified and expedited basis than in Armenia.