- The decision on founding the bank was made at the constituent assembly of stockholders on May 15, 1990, and a month later USSR State Bank provided the first license for implementation of banking activity. Per se, “Prometey Bank” was the first commercial bank, functioning on the territory of the country. 

“Zakneftegazstroy – Prometey” OJSC, which took up construction works in the disaster zone from the very first days of Spitak earthquake, was the main founder of the bank.  In the view of this fact, financing of capital construction in the first place in the zone of Spitak earthquake was the initial direction of the bank activity. 

For those times, the bank possessed quite serious capital: about 11mln rubles, however at the end of 1993 our capital equaled to zero as a result of AMD reform. Force majeure situations and factual absence of a legislative field led to the fact that in this period our compatriots witnessed closure of more than one bank. And only due to efforts of the main founder of the bank - “Zakneftegazstroy – Prometey” OJSC, which in fact again replenished the bank’s capital, as well as due to competent and reserved policy, we managed to not only live through it, but also to develop dynamically. 

The new stimulus to broadening our activity was the fact that we moved to a new and comfortable head office of the bank in 2000, which, given all the necessary conditions, inspired for rendering universal banking services. 

- Conservatism is most of all the basis of my activity as the head of the bank and is based on the existing many years’ practice and work experience in the banking system. According to me, a banker should keep to a conservative course. He/she should not get inspired by momentary achievements and, on the contrary, should not get upset by temporary failures. In my understanding, conservatism is associated with temperance and restraint, which, however, does by no means hinder keeping pace with the time and applying advanced practice in the sphere of banking services.

- My activity as a banker started in 1973 as a credit specialist, and then the manager of the Armenian SSR State Bank regional branch. Since 1992, I have been holding the position of Chairman of “Prometey Bank” Board of Directors.  

As to correlation of profit and general capital and assets, our bank has been traditionally occupying leading positions in the banking system. Mainly this is conditioned by competent work, which rules out the chance of provision of classified credits, as well as the well-weighted expenditure policy of the bank. 

Possessing a relatively small deposit portfolio and working mainly using own means we minimize expenses on deposit commitments. Instead, the bank enjoys high capitalization and sufficient volume of means, attracted at relatively low interest rates. 

- Over the past two years, “Prometey Bank” issued and sold own dematerialized bonds with the total value of USD 22mln through private placement. Bonds with the value of USD 12mln were purchased by Swiss E.F.G. Bank Zurich, and the remaining part of bonds with the value of USD 10mln was purchased by Russian “Prometey City” Company this year. 

These placements help us solve the issue of attracting long-term resources at relatively low interest rates, at that, as opposed to target loan programs of international financial organizations, we are not limited as to placement of those means. I should note that following the results of the first half-year, our credit investments increased by 5.5bln AMD due to attracted means. In early 2011, we plan to implement a new placement. 

- Today the bank possesses 4 branches in the capital city and according to the development program for the nearest 3 years we plan to open one branch in Gyumri and Vanadzor towns each.  

In any case, the prospect of opening new branches does not aim at stirring up in the segment of retail banking services. Just like before, the bank will most of all focus on servicing corporate customers and the main purpose for establishing regional branch will be to attract new business structures to our customer base. 

I will immediately note that this is a mechanical process, related to recall of means by two large corporate customers of the bank for funding their trade operations. The commitments on demand provide for the opportunity to operate the remainders of accounts at any convenient time for the customer, and this was carried out. It is likely that after conclusion of the business deals, these accounts will again be replenished. 

Today the bank possesses quite sufficient means for crediting both big corporate customers and representatives of small and medium enterprise (SME). I believe that we offer quite competitive terms for SME crediting, offering them business credits at the annual interest rate of 12%.  

Today they speak much of the necessity to support SME, but in practice one sees that only a few of them are solvent, and only a few of them present corresponding business projects. 

Indeed, “Prometey” insurance company functioned in Armenia till 2002, however it did not justify its expectations in the view of legislation imperfection, absence of insurance culture. Despite the expected developments in insurance market, we have no plans on founding a new insurance company. 

Quite a few insurance companies function in Armenia today and they should not only meet the norms of the Central Bank, but also be quite capitalized, especially in conditions of Compulsory Insurance of Vehicle Owner’s Civil Liability. 

A traditional roundtable with participation of our customers, stockholders and foreign partners will take place on October 2. At the roundtable we will sum up the results of the path we have gone and will outline plans for the nearest prospect. 

The same evening, Inga and Anush Arshakyans’ charitable concert will take place in the Academic Theatre of Opera and Ballet and the means from the concert will be transferred to Gyumri orphanage. 

We want to hope that crisis phenomena are left behind and the economic growth, registered in the first half of the year, will continue, and the banking system of our country has significant contribution to that.