THERE ARE NO FOREIGN PARTICIPANTS IN CAPITAL OF ONLY 2 OUT OF 21
ARMENIAN BANKS
YEREVAN, DECEMBER 26, NOYAN TAPAN. According to the deputy chairman of
the Central Bank of Armenia (CBA) Artur Javadian, the International
Finance Corporation (IFC) has a credit portfolio of 18 million dollars
in Armenia. He said at the December 26 press conference that three
groups of factors influnced the IFC’s decision to invest 25 million
dollars in Ardshininvestbank. The first group of factors includes the
stability, reliability and transparency of the Armenian banking system.
In particular, stability with respect to Ardshininvestbank is reflected
in 85% growth of the bank’s credit portfolio in 2007 as compared with
2006. Its reliability is seen in the fact that fixed-period deposits of
natural and juridical persons make up over 80% of the liabilities of
this bank. Its transparency is characterized by the fact that in 2007
Ardshininvestbank’s net profit amounted to more than 4 billion drams
(about 13 million USD), exceeding twofold last year’s net profit.
The second group of factors that condition large investments in the
banking system is related to attractiveness of Armenia’s economy and
banking system. It is expressed in a high level of repayment of
credits. 98.3% of Ardshininvestbank’s credits are classified as
standard ones. The third group of factors is reflected in the use of
corporate management principles especially in the banking system, as a
result of which assets and capitals of banks increase, the networks of
their branches expand, new institutional investors are attracted,
competition grows, interest rates are reduced and new financial
instruments are introduced.
In the words of the CBA deputy chairman, there are no foreign
participants in only 2 out of the 21 Armenian banks. On the whole, in
the past few years, participants of the Armenian banking system have
signed big deals of at least 80 million dollars with foreign partners.
It is planned that another 2-3 deals will be signed in early 2008.