IFC SIGNED AN AGREEMENT WITH ARMENIA’S ARDSHININVESTBANK ON RENDERING ADVISORY SERVICES

ARKA
Oct 19, 2009

YEREVAN, October 19. /ARKA/. International Finance Corporation (IFC)
and Armenia’s Ardshininvestbank signed an advisory services agreement
with Armenia’s Ardshininvestbank on Monday to help improve the bank’s
risk management practices.

"This contract is targeted at rendering services on risk management,
as well as training of the staff and is considered a part of
broader activity of IFC in Armenia which aims at the stabilization
of banking sector", said Karen Balasanyan, Deputy Chairman of the
Board of Ardshininvestbank. The contract will secure the bank from
negative influence of external and internal factors which exist due
to difficult economic situation in the world and will allow to render
qualified services to the clients.

"The given program is envisaged for one year and during each of the
five phases training will be conducted by the best specialists of the
world", he said. In the result of this joint work, creation of optimal
structure of risk management, training of the staff and introduction
of assessment system and decision making is expected. "We hope that
our cooperation will allow the Bank to strengthen its position in
the banking market of Armenia", he said. Head of Caucasus Regional
Office of IFC Thomas Lyubeck said that the agreement is a part
of IFC’s broader regional crisis-response initiative focused on
strengthening the banking sector, the aim of which is to improve the
processes of crediting, risk management and qualified services which
will increase accessibility of banking services for the clients,
mainly in small business.

"Advisory services will be provided in the sphere of management of
credit risks, assets and information systems, as well as general
functions of risk management. Our specialists will work with the
specialists and the staff of Ardshininvestbank providing training
and monitoring of banking structure", he said. Lyubeck said that
this contract is the result of many years cooperation between IFC
and Ardshininvestbank.

"In 2007 IFC became the owner of 10% of shares of the bank and
gave credit in the amount of $15 million. In June, 2009 we signed
a contract with Ardshininvestbank at the amount of $5 million. Next
year IFC will more closely and efficiently cooperate with the Bank",
he said. International Financial Corporation (IFC) is a member of the
World Bank Group. It stimulates stable economic growth in different
countries, assists in the development of private sector and renders
advisory services to the entrepreneurs and the government on risk
management. CJSC "Ardshininvestbank" got license (N 83) from CB of
Armenia on February 27, 2003 for the implemention of banking activity.

The main shareholders of the Bank are Open JSC "Center of Business
Investments" (86,82%) and International Financial Corporation (10%),
which became a shareholder in 2007. The Bank is the affiliate member
of international payment system MasterCard/Europay, as well as
shareholder of the systems of card operations CJSC "Armenian Card"
in the territory of Armenia. As of the end of July the assets of the
Bank made about 320 billion drams.