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IFC HELPS ARMENIAN BANK IMPROVE RISK MANAGEMENT WITH INNOVATIVE FINANCIAL PRODUCTS
ARMENPRESS
OCTOBER 18, 2010
YEREVAN
YEREVAN, OCTOBER 18, ARMENPRESS: IFC, a member of the World Bank
Group, is helping Armenia's Ameriabank engage for the first time in
international interest-rate and currency-swap transactions, which
will strengthen the Armenian financial system by reducing currency
and interest-rate risks.
An official from the IFC told Armenpress that IFC and Ameriabank
today signed an International Swaps and Derivatives Association
master agreement, the international standard for risk management
transactions. Under the agreement, IFC will provide Ameriabank with
U.S.-dollar interest-rate swaps and multiple-currency swaps. This
will enable the bank to better manage its interest-rate risks on
borrowed funds as well as currency risks for its euro deposit base,
and allow it to provide a wider range of deposit products to customers.
"This transaction will help strengthen our risk-management capacity,
which is particularly important in the post-crisis period," said Artak
Hanesyan, Ameriabank's General Director and Management Board Chairman.
Thomas Lubeck, IFC Regional Head of the Caucasus, said, "This is our
first swap agreement in Armenia and we are happy to be providing this
high-level of financial technology. It will provide Ameriabank with
important risk-management tool and improve the bank's sustainability."
Ameriabank became an IFC client in mid 2009, when the bank joined
IFC's Global Trade Finance Program. Building on the partnership, in
December 2009, IFC provided Ameriabank with a $15 million senior loan
for onlending to small hydropower plants that will boost renewable
energy supply and decrease greenhouse-gas emissions in Armenia. IFC
has supplemented the investment with advisory services to help
the bank assess and review projects focusing on environmental and
financial aspects.
Armenia became a member of IFC in 1995. Since then, IFC invested
$87 million in 18 projects across a range of industries, including
financial markets, general manufacturing, energy, mining,
and chemicals. IFC Advisory Services focuses on developing the
country's the financial sector, sustainable energy, and regulatory
simplification.
IFC, a member of the World Bank Group, is the largest global
development institution focused on the private sector in developing
countries. We create opportunity for people to escape poverty and
improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing
capital from others, and by delivering advisory services to ensure
sustainable development. In a time of global economic uncertainty,
our new investments climbed to a record $18 billion in fiscal 2010.
From: A. Papazian
ARMENPRESS
OCTOBER 18, 2010
YEREVAN
YEREVAN, OCTOBER 18, ARMENPRESS: IFC, a member of the World Bank
Group, is helping Armenia's Ameriabank engage for the first time in
international interest-rate and currency-swap transactions, which
will strengthen the Armenian financial system by reducing currency
and interest-rate risks.
An official from the IFC told Armenpress that IFC and Ameriabank
today signed an International Swaps and Derivatives Association
master agreement, the international standard for risk management
transactions. Under the agreement, IFC will provide Ameriabank with
U.S.-dollar interest-rate swaps and multiple-currency swaps. This
will enable the bank to better manage its interest-rate risks on
borrowed funds as well as currency risks for its euro deposit base,
and allow it to provide a wider range of deposit products to customers.
"This transaction will help strengthen our risk-management capacity,
which is particularly important in the post-crisis period," said Artak
Hanesyan, Ameriabank's General Director and Management Board Chairman.
Thomas Lubeck, IFC Regional Head of the Caucasus, said, "This is our
first swap agreement in Armenia and we are happy to be providing this
high-level of financial technology. It will provide Ameriabank with
important risk-management tool and improve the bank's sustainability."
Ameriabank became an IFC client in mid 2009, when the bank joined
IFC's Global Trade Finance Program. Building on the partnership, in
December 2009, IFC provided Ameriabank with a $15 million senior loan
for onlending to small hydropower plants that will boost renewable
energy supply and decrease greenhouse-gas emissions in Armenia. IFC
has supplemented the investment with advisory services to help
the bank assess and review projects focusing on environmental and
financial aspects.
Armenia became a member of IFC in 1995. Since then, IFC invested
$87 million in 18 projects across a range of industries, including
financial markets, general manufacturing, energy, mining,
and chemicals. IFC Advisory Services focuses on developing the
country's the financial sector, sustainable energy, and regulatory
simplification.
IFC, a member of the World Bank Group, is the largest global
development institution focused on the private sector in developing
countries. We create opportunity for people to escape poverty and
improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing
capital from others, and by delivering advisory services to ensure
sustainable development. In a time of global economic uncertainty,
our new investments climbed to a record $18 billion in fiscal 2010.
From: A. Papazian