Wednesday, August 24 2016 20:31
Alina Hovhannisyan

Board of Central Bank of Armenia terminated license of BTA Bank (Armenia) related to its merger with Armeconombank

Board of Central Bank of Armenia terminated license of BTA Bank (Armenia) related to its merger with Armeconombank

ArmInfo. Board of Central Bank of Armenia terminated license of BTA Bank (Armenia) related to its merger with Armeconombank. The press-service of the CBA has informed that the Board has made decision on August 24 registering delivery-acceptance certificate under the merger agreement and revised charter of Armeconombank. The decision of the Central Bank on termination of license of BTA Bank comes into force since the moment of its publication. 

Starting from this moment Armeconombank acts as legal successor of Armenian BTA Bank. The head office and branches of the bank will continue operating as divisions of Armeconombank. To note, as of July 1 2016 branch network of Armeconombank accounts for 40 offices, 19 of which are located in Yerevan, 20 in regions of Armenia and 1 in NKR. Taking into account BTA Bank's branches branch network of Armeconombank will increase to 46 offices (24 in Yerevan and 22 in regions and NKR).

Earlier on June 14 Board of Central Bank approved and registered agreement of BTA Bank's merge with Armeconombank.

To note, Armenian Central Bank's new minimum total capital requirement (30 bln AMD versus current 5 bln) will come into force since Jan 1, 2017.  In this light Armenian banks are refilling their capitals also by mergers. ProCredit Bank and BTA Bank were the first to announce in the end of 2015 about merger with INECOBANK and Armeconombank respectively. Considering this, there are 19 banks currently operating in Armenia, only 7 of which have total capital exceeding the new minimum requirement. 

To note, Armeconombank was the first of the state banks to be reorganized into a joint-stock bank with a CB registration dated 26 Aug 1991. In 1997, Armeconombank's stockholder capital radically changed when the founders of SIL Concern (the Sukiasyans family) joined the capital. In 2004, EBRD joined Armeconombank's capital. As of 1 July 2016 the majority shareholders of the Bank are Sukyasyan's family- 66.51%, EBRD - 11.05%. Total capital of the bank as of July 1 2016 was 18.5 bln AMD (74.2% y-o-y growth), assets-114.2 bln AMD (16% y-o-y growth), including credit exposures-68.4 bln AMD (25% y-o-y growth), general obligations-95.7 bln AMD (9% y-o-y growth).

BTA Bank (Armenia) is the subsidiary of Kazakhstan's BTA Bank and has been operating on the Armenian market since 21 June 2005. In Feb 2009 Samruk-Kazyna Fund purchased 75.1% of BTA Bank's shares as part of contingency measures of the Government of the Republic of Kazakhstan. In 2014 it was announced that the BTA Bank and Kazkommertsbank will merge. The Kazkommertsbank took over 46.5 percent of BTA shares of the Kazakh state holding company Samruk-Kazyna, another 46.5 percent bought Kenes Rakischew, one of the largest private investors in Kazakhstan.  However, most of the banks' subsidiaries abroad were left "without supervision". As of April 1 2016 total capital of BTA Bank Armenia was 5.3 bln AMD with the share of accumulated loss 23.5% or 1.25 bln AMD, with a 41.2% year-over-year growth.

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