Yerevan, 19.March.2024,
00
:
00
1 $ = 0 ֏, 1 = 0 ֏, 1 = 0 ֏
BREAKING


Ara Sargsyan. desire to keep pace with best international practices is in our dna

INTERVIEW

 

Interview with Ara Sargsyan, Head of Financial institutions division at Assets, liabilities
and capital management center

 

Does attraction of large sums from international financial institutions indicate the
trustworthiness of Ameriabank, or is this just win-win business?

 

Well, no transaction in real business goes through, if it’s not mutually beneficial. However, an
important factor, if not the most important factor above all the commercial terms and conditions is the trust and the way investors or lenders believe in your success story. Since 2008 we have been able to raise more than $1 billion from international financial institutions (IFIs). I think the sheer volume of funds and the number of our overseas partners (and we work with all major IFIs) speak very loudly about the very trust of our partners – trust in our business, our aspirations and the way we work to materialize them. As a matter of fact, two of our long standing partners – the European Bank for Reconstruction and Development and the Asian Development Bank – acquired equity stakes in Ameriabank, thus affirming the trust we earned during years of cooperation.

 

There are two mutually exclusive opinions about the debt-carrying capacity of Armenianeconomy: some experts think that economy suffers from lack of credit resources, while othersargue that economy is over-indebted. What’s your opinion?

 

Firstly, loans to GDP ratio in Armenia is 45% which is way lower than that in developed
countries. Therefore I wouldn’t say that the Armenian economy is over-indebted. But there is no universally right or wrong answer here, because the debt can be good and bad, as such. Certainly there is an argument to be made that no debt is good one, but taking on debt is the only way many people now can afford to purchase large-ticket items like apartments and cars. While such loans usually are justifiable and bring value to the person taking on the debt (and contribute to economy by stimulating consumer demand), there is the other end of the spectrum – taking on debt through careless spending, mostly on credit cards. In this case we would do better to realize how important it is to increase financial literacy and financial discipline, rather than criticize over-indebtedness as such.

 

With each new deal and increase of Ameriabank’s equity, external financial resources become more and more accessible for you. What opportunities does this offer to clients of Ameriabank and to Armenian economy?

 

Very good question. Ameriabank – as a financial intermediary – is eventually on-lending
attracted funds to end-beneficiaries, i.e. its customers, thus adding value both to small and large businesses and the economy as a whole. The bank currently enjoys the highest credit rating from two global rating agencies – Moody’s and S&P - which allows us to borrow both in hard currency and Armenian drams at the most favorable terms a local company in Armenia can borrow at. We are currently working with more than a dozen of institutional investors, allowing us to sustain a very diversified portfolio, as far as wholesale funding is concerned. For our clients, and accordingly for the economy of our country, this means being able to get the required amount of funding at competitive rates, and for promising sectors or market players with high growth potential this means being able to get financial support throughout rough times.

 

Working with IFIs does not only mean attracting funds. It means aligning your own business to best world practices. If we look at cooperation with IFIs from this viewpoint, what impact have they had on Ameriabank?

 

Indeed, doing business with institutional investors is not just about fundraising – it goes beyond that, for sure. This sterling partnership with IFIs has become possible for us due to achieving and sustaining certain financial indicators and continuously improving our corporate governance. Cooperation with our esteemed partners is very challenging, but also very educating too. It is the result of our dynamic growth, but it also requires the right stimuli and targets. Benchmarking regional and global players and always striving for best practice is in our DNA, something that is ensuring the continuous progress of our Bank. It is demanding enough to operate all the time under the scrutiny of local regulator, but doing that in the framework of a multi-dimensional and multi-disciplined covenant matrix is more challenging. I am confident that our strategy of cooperation with IFIs is the right one and very important; it’s what makes us different from many of our peers, ensuring that we sustain robust capital buffers, liquidity positions, quality IFRS reporting based on exhaustive risk management and exceptional corporate governance that we have deployed in our organization.

 

Three Sad Stories about FraudstersUcom showed high and stable growth in fixed and mobile communications in 2023 The number of Team mobile subscribers is over 1 million On the occasion of International Women's Day ZCMC employees were awarded 3,780,052 Drams to the City of Smile Fund: The Power of One Dram Will Go to My forest Armenia in MarchGlobal Finance Recognizes Ameriabank's Leadership in Sustainable Finance in ArmeniaHow AMIO succeeded in gathering its team, partners and customers around a common goalWhat to Give on The Occasion of Women's Day? Idram and IDBankHalf Price for Everyone and up to AMD 15.000 Welcome Bonus for New Customers. IDBank Ucom congratulates everyone with spring holidays with a special offer Doing Digital Forum Returns Featuring Brett King as Keynote Speaker We celebrate the successes of AMIO BANK and Ingo Armenia in 2023ZCMC declares, that the Russian company GeoProMining LLC has never been and is not currently a shareholder of the Company, nor does it have any stake in the Company's ownership structureA Millionaire Wanted: New Draw from IdramUcom's fixed network is now available at AshtarakVisa & Unibank Unique opportunities to Olympic Games fans thanks to Visa in ArmeniaThe renovated Ucom sales and service center opened at Komitas 30Privileged conditions with the Business Prime packageInterview with Chairman of BOGG PLC Mel CarvillGet 5% cashback on your AMIO digital card! Get 5% cashback on your AMIO digital card!Book Giving Day in Khnko Aper Library. IDBankTransfer your loan and take benefit of the 1.5% low interest refinancing offerAraratBank Donates to Regional Libraries: BOOKS FOR ALLAmeriabank set to join BOGG, a London Stock Exchange (LSE) listed financial group as a standalone entityWhich Book to Choose as a Gift for the Book Giving Day? A Piece of Advice from Idram and IDBankAMIO BANK will start the leasing process in the immediate futureFast Bank has received a Mastercard membership license Two new sports channels in Ucom's uTV channel listA bunch of smiles in the city. "Artsakh" branch of AMIO BANK has been reopened A network ready for the transition to 5G and qualitatively new television. Ucom signed official agreements with Nokia and MediaKindHow to Celebrate Love Days? A Piece of Advice from Idram and IDBankVisa Travel card - your best friend of the road Ardshinbank announces agreement to acquire HSBC ArmeniaFastex to Provide up to 5 Million $FTN to the “Olympionic” Sports FoundationAMD 3,665,972 to Armenian Mothers. In February, Cancer Awareness Month, The Power of One Dram will be directed to the City of Smile Ambassadors accredited to Armenia, Galaxy Group and Ucom leaders spoke at the largest event of the European Business Association Idplus Digital Fuel Cards: Everyone Makes a Plus Ameriabank is the Largest Taxpayer Among Armenian BanksThe Director General of Ucom delivered a lecture at the School of Ethics New promotion from AMIO BANK for international SWIFT transfersPay for the Parking with Idram with One Click IDBank’s Davtashen Branch Is Waiting for Customers After Renovation"United and caring". Ucom participated in the collaborative charity initiative of Galaxy Group of Companies and Armenian Red Cross Society About 5,000 families forcibly displaced from Artsakh received 100 tons of aid from Galaxy Group of CompaniesConverse Bank for the fifth time in a row is recognized as the best by Global Finance The announcement on the complete allocation of "Euroterm" bonds ahead of schedule.Ucom and SunChild NGO Power Aghavnadzor Kindergarten for Year-Round Operation Zangezur Copper-Molybdenum Combine has invested more than 5 billion AMD in social development projects in 2023Ralph Yirikian, Director General of Ucom, congratulated the forcibly displaced children from Artsakh living in Tavush and Vayots Dzor with New Year’s gifts