Interview of “Ardshininvestbank” Chairman of the Board of Directors Nerses Karamanukyan to Mediamax Agency and Banks.am portal

- Recently, you became the Chairman of “Ardshininvestbank” Board of Directors. What issues demanded your priority attention as the Chairman?

- My familiarization with “Ardshininvestbank” started back when I was the Head of the Armenian Office of International Finance Corporation (IFC).

I would not like to single out any special tasks and difficulties, since now the issues, which have occurred as a result of a complex financial-economic situation in the world and requiring immediate solutions, predominate. Our bank does everything possible to secure stable activity without shocks. 

The economic situation which has formed in Armenia has made minor corrections in our policy, however all the possible risks are constantly analyzed and assessed in the bank. Basing on that, our further steps are planned.

In 2008, the bank received an international Quality Management System Certificate ISO 9001:2000. This is an evidence of the fact that the entire process of organizing the bank’s operation and the quality of the provided services meets international standards.

- What are the bank’s indices following the results of the first half of 2009?

- As to the basic indices, in the first half of the year “Ardshininvestbank” kept its positions within the top three leaders of the banking system of the country. The bank leads as to the volume of net profit (1879,4mln AMD), occupies the second place as to the volume of total capital (26 983,5mln AMD), the bank’s share in the banking system of Armenia makes 10.5%, which evidences stability and high level of reliability of “Ardshininvestbank”. As to the volume of total assets and liabilities, we occupy the third position.

I also want to note that “Ardshininvestbank” leads in the banking system of Armenia as to the volume of paid taxes and is the 13th in the list of 300 top taxpayers of the country. In January-June, 2009, the bank paid 1.6bln AMD to the state budget.

- Recently, “Ardshininvestbank” received a few credit lines from international financial structures. Now they often talk about increase in price for external resources and difficulties in attracting them. Does “Ardshininvestbank” experience those difficulties?

- Significant place in our bank’s policy is assigned for cooperation with international financial structures. In any agreement, signed with foreign partners, both the peculiarities of our country’s financial market and the international practice are taken into account.

The main indices of “Ardshininvestbank” evidence that one can establish serious and mutually beneficial partnership with our bank. Agreements, signed within a short timeframe with two serious financial structures evidence that fact. In particular, here the matter is the loan agreement, signed in March with American “WorldBusiness Capital” Company for $10mln, and the credit line of IFC for $5mln, directed at funding commerce.

Our cooperation with foreign financial structures continues. But it would not be correct to say that we achieve results easily, since we carry out serious and consistent work with each partner.

- Some time ago, there were talks on the intention of “Ardshininvestbank” to undergo listing on a foreign Exchange. Does this intention still hold?

- I am forced to again refer to the complex situation, which has been formed in the global financial market and which has made its corrections in our activity. We will return to this issue later.

- Cases of own bonds buyback by a bank have been registered in the local capital market recently. What is this conditioned by?

- This is related to the situation in financial markets. The buyback of the bank’s own bonds is mainly conditioned by abrupt and significant change in the national currency exchange rate.

As it is known, acquisition of bonds is a market tool, which is equal to investing money. It is natural that what happened to AMD deposits in the Armenian banking system (their significant part was converted to deposits in foreign currency), could not but influence the market of bonds as well. I will note that the buyback of bonds was fixed in the terms of the issue, that is to say, it is a normal process, nothing extraordinary.

By the way, just recently the bank realized repayment of coupons. 16 legal entities and 69 individuals received coupon payments. The sum of the coupon, paid to legal entities, made 18.7mln, and to individuals – 1.1mln AMD. 

“Ardshininvestbank” constantly follows the developments in financial markets of both Armenia and the leading countries. The prospects of next issues of the bank’s bonds will to greater extent depend on these very developments.