–Recently ARMECONOMBANK started financial and legal auditing in BTA bank Armenia with the further goal of merger of the two banks.
And what is expected in the result of the merger?
– At present I cannot reveal the details of the transaction. This information is of top confidential nature. The terms of the transaction, evaluation will be clarified after completion of the financial and legal auditing. Our goal is strengthening of ARMECONOMBANK, consequently all our actions will be directed to the upgrowth and strengthening of ARMECONOMBANK.
I suppose the expected merger aims at conforming the capital of ARMECONOMBANK to the minimum level of regulatory capital of AMD 30 billion in compliance with the Central Bank decree coming into force from January2017.
The expected merger, of course, will increase the bank’s regulatory capital, however, besides the above mentioned merger; we are conducting a parallel replenishing of capital by issuing new shares. By the end of December this year the allocation of shares with total sum of AMD 5 billion. 40 thousand will be completed. In fact, outstanding shares are being purchased starting from one share up to several thousand shares by wide layers of the public.
The process of this issue already proves that the number of our shareholders has doubled and tripled. I would like to mention that the small shareholders’ rights are always in the center of attention of the bank management. Generally, there is a rule in the world; each one tries to invest his savings in such a business area where there is a success. I can say with confidence that any one investing in ARMECONOMBANK will record success.
– Do you consider the variants of merger of ARMECONOMBANK with other Armenian banks as well?
– We are always open for discussions and we have always been ready to discuss any variant of mutual cooperation. If any Armenian bank either with foreign or domestic capital would like to merge with ARMECONOMBANK we will consider that proposal with willingness.
If we manage to join us another small bank as well, then it will contribute to further stabilization and filtration of the Armenian banking system and growth of confidence to the latter.
– Mr. Sukiasyan, don’t you think that the Central Bank’s decision of the minimum capital threshold of AMD 30 billion coming into force from 01 January, 2017 will cause keen competition between the banks? How your bank is going to resist this trial?
– Of course, there will be a surplus of free resources in the market and priority will be given to those banks having cheaper resources and managing their assets more reasonably.
The international donor organizations trust ARMECONOMBANK as good partners and provide rather cheap resources.
I can say with confidence that the bank’s current team has professional experience, knowledge, market knowledge and team mentality that will allow to successfully move forward.
Ani Arakelyan