YEREVAN, October 29. / ARKA /. Armeconombank’s expected merger with BTA Bank will increase our regulatory capital, Saribek Sukiasyan, a shareholder of Armeconombank, said in an interview with Armenian daily “Hraparak.”
Sukiasyan said Armeconombank launched a financial and legal due diligence of BTA Bank which will last two months, after which, in all probability, the deal will be finalized.
“Our goal is to strengthen Armeconombank. Therefore, all our actions will be aimed at its consolidation and strengthening”, he said.
Sukiasyan said that in addition to the merger, the bank is replenishing its capital also via issuance of new shares. According to him, by the end of this year the bank will offer 5.4 billion drams worth shares.
Sukiasyan said Armeconombank is ready to consider merger proposals from other local banks both with local or foreign capital.
“If we succeed in merging another small bank, it will increase more the level of our stability, cleanse the local banking system and increase its credibility,” he said.
From January 1, 2017 the minimum amount of Armenia-based commercial banks’ total capital must be to 30 billion drams, up from the current 5 billion drams. The measure is aimed at encouraging mergers and consolidation of banks, which is expected to create a sound competitive environment and make banking services more available.
At the end of September, Armeconombank’s share capital stood at 2.3 billion drams. The bank’s assets were worth 99.5 billion drams; its liabilities stood at 88.6 billion dram, the capital – at 10.9 billion and credit investments- at 54.4 billion drams.
Armeconombank was registered in 1991. Its shareholders are EBRD (20%), Saribek Sukiasyan (22.6%), Khachatur Sukiasyan (19.5%) and Robert Sukiasyan (15.3%).
BTA Bank was founded in 1991. Its shareholders are: BTA Bank (Kazakhstan) – 65.2%, ZRL Beteilingungs (Austria) -31.1% and PSC AMK-Invest LLC- 3.7%. – 0-
