Interview with Ara Sargsyan, Head of the Financial Institutions Department of the Assets, Liabilities and Capital Management Service of "Ameriabank" CJSC
Mr. Sargsyan, Ameriabank attracts a significant amount of funds from international financial institutions. What does this indicate - a high level of trust in the Bank or simply a mutually beneficial cooperation?
At the heart of any transaction is always the mutual benefit of the transaction. At the same time, regardless of the commercial conditions, the extent to which investors and lenders trust us and believe in our success story is also very important. Since 2008, we have raised over $1 billion from international financial institutions. I believe that the indicated volume of funds and the number of our international partners are the best proof of our partners' confidence in Ameriabank's activities, programs and means of their implementation. By the way, I should mention that we cooperate with all leading international financial institutions. Two of our old and good partners, EBRD and ADB, have become shareholders of Ameriabank, once again confirming the level of trust that we have gained as a result of long-term cooperation.
Two conflicting opinions are regularly heard regarding the creditworthiness of Armenia's economy. some experts believe that the economy is suffocating without credit, while another believes that the economy is over-leveraged. And what do you think?
First of all, I would like to note that the ratio of loans to GDP in Armenia is 45%, which is significantly lower than the same indicator of developed countries. That's why I don't think that the Armenian economy is over-credited. Of course, one can disagree with those who believe that businesses and consumers do not need loans at all, but there is no one answer that is absolutely right for all cases. It is impossible to imagine business development without loans. For many people, a loan is the only way to buy a house or a car. As a rule, these loans justify themselves and bring considerable benefit to people. In addition, consumer loans also stimulate the growth of consumer demand and, therefore, the economy, which is definitely a positive factor. However, this question has another side. Sometimes people end up in debt as a result of reckless and unjustified spending. As a rule, this happens in the case of a line of credit with cards. In this case, in fact, it is more correct to talk about improving the general level of financial literacy and financial discipline, and not about over-indebtedness of the economy.
As a result of each new transaction and the growth of Ameriabank's capital, funds from foreign financial markets become even more accessible to you. What opportunities does this create for the Bank's clients and, in general, the economy of Armenia?
Very good question. Acting as a financial intermediary, Ameriabank provides the borrowed funds from international institutions to the borrowers, creating additional value for both local small and medium-sized businesses and the RA economy in general. Ameriabank was awarded the highest rating by global rating agencies such as Moody's and S&P. Thanks to this rating, we are able to get loans in foreign currency and AMD on the most favorable terms. We cooperate with more than 2 dozen institutional investors, which allows us to have a diversified portfolio of wholesale financing. Due to this, our customers, and therefore the RA economy, have the opportunity to receive loans in the necessary volume and at competitive interest rates, and the most promising branches of the economy and companies with great growth potential are able to benefit from our financial support.
Cooperation with international financial institutions does not only involve attracting funds. It allows applying international best practices. From this point of view, what impact has cooperation with international financial institutions had on Ameriabank?
Cooperation with institutional investors is definitely much more than just raising funds. The current high level of our relations with international financial institutions was formed due to 2 main factors. they are the continuous improvement of the corporate governance system and the constant provision of a certain level of financial indicators. I should mention that cooperating with foreign partners is not easy, but at the same time it is very effective. We need the right incentives and benchmarks to drive that collaborative pace. The pursuit of the best international practices is in our DNA, which allows us to ensure the continuous growth of Ameriabank for more than ten years. Working under the supervision of a local regulatory body is a huge responsibility in itself, but I think you will agree with me that working within complex and multi-faceted contracts is much more difficult. I am sure that we have chosen the right strategy of active cooperation with international financial institutions. It is very important for us and allows us to differentiate ourselves from our competitors, provide stable buffer capital, sufficient liquidity positions, and have a high-quality accountability system in accordance with IAS. And at the basis of all this, of course, are the exclusive systems of risk management and corporate management implemented in our Bank.