FINANCIAL AND ECONOMIC INDICES OF ARMECONOMBANK GROW

Noyan Tapan
Oct 24, 2008

YEREVAN, OCTOBER 24, NOYAN TAPAN. There was a decline in financial and
economic indices of Armeconombank from the beginning of 2008 to April
1st, after which a growth was recorded in almost all the indices. The
amount of deposits attracted from natural persons increased by
45%, the assets grew by almost 30%. Besides, the liquidity of the
bank’s assets currently makes 100% as compared with the norm of 80%
established by the Central Bank of Armenia and the average index of
82% in the country’s banking system, the chairman of Armeconombank
OJSC David Sukiasian stated at the October 23 press conference.

He explained the observation of the bank’s financial and economic
indices in the indicated periods by the fact that "there was one
situation before April 1st and quite another after it – in connection
with the internal political events following the presidential
election."

D. Sukiasian said that the international financial crisis did not
have a great impact on Armenia’s banking system: "the banks just have
difficulty attracting resources from foreign banks, due to which the
interest rates of credits and financial resource attraction will rise."

It is noteworthy that Armeconombank has 1,420 shareholders. Among the
biggest ones is the European Bank for Reconstruction and Development
(EBRD) with its stake of 25% of authorized captal + 1 share. The
overall assets of Armeconombank currently make more than 52 bln
drams (over 168.9 mln USD), its overall capital makes over 8.5 bln
drams. The bank has about 60 thousand customers and 46 branches,
including 20 in Yerevan and 26 ones in almost all the marzes of
Armenia and Nagorno Karabakh. It was the first Armenian bank to
receive a rating of Moody’s Investor Service. It was assigned D-
rating of financial stability and Ba3 rating of long-term deposits
in Armenian drams and foreign currency.