Yerevan/Mediamax/. International Finance Corporation (IFC) will hedge currency and interest risks of international borrowings of “Ameriabank”.

Mediamax reports that the corresponding International Swaps and Derivatives Association master agreement was signed in Yerevan today by IFC Regional Director in the South Caucasus Thomas Lubeck and “Ameriabank” Investment Banking Director Andrei Shinkevich.

According to the agreement, IFC will provide “Ameriabank” with interest-rate swaps, which will allow the bank better managing interest risks of attracted financial resources, as well as currency risks of the deposit base in EUR.

Andrei Shinkevich explained the conclusion of such an agreement is conditioned by the fact that the bank attracts financial resources from abroad mainly at a floating rate, bound to LIBOR (London Interbank Offered Rate), and places those means among Armenian borrowers at a fixed credit interest rate and thus takes upon itself the risks of fluctuations in international interest rates of borrowings.

IFC Regional Director in the Caucasus Thomas Lubeck noted that this is the first IFC Swap Agreement in Armenia, and it will provide “Ameriabank” with an important tool for risk management. According to Thomas Lubeck, this is a framework agreement, and it provides for hedging interest-rate and currency risks of “Ameriabank” international borrowings irrespective of what structure represents the creditor.