Monday, September 26 2016 13:44
Karine Melikyan

Central Bank reduces standard of compulsory reservation of raised funds in foreign exchange from 20% to 15% for banks

Central Bank reduces standard of compulsory reservation of raised  funds in foreign exchange from 20% to 15% for banks

ArmInfo. Central Bank of  Armenia has reduced the standard of compulsory reservation of the  raised funds in foreign exchange from 20% to 18% for banks and  extended the term of transferring the reserved amounts to CB to 20-30  days from the previous 2 weeks.  The Central Bank's press-office told  ArmInfo on September 26, the amendments to the Provision No.2  "Regulation of the activity of banks, basic economic standards of the  banking activity" were made on September 20 at the meeting of the  CB's Council.  

Since 2015, the Central Bank has been consistently taking measures to  stimulate bank to raise long-term money for sustainable financing.  Under this policy, the CB has expanded the list of international  organizations the money raised, which is subject to compulsory  reservation on the reduced standard. Along with this, the CB  stimulates the raising of long-term funds from the bonds issued on  the local stock exchange. 

Reduction of the compulsory reservation standards create more  preferential terms for banks to raise long- term money, which in turn  boosts lending capacities and issue of bonds with listing on  international exchanges.  The standard of the minimal amount of  compulsory provisioning of AMD funds placed in CBA is 0%. 

To recall, the Central Bank increased the standard of compulsory  reservation of the raised funds in terms of foreign exchange from 12%  to 24% on December 17 2014 amid sharp devaluation of the national  currency.  Later on December 23, the CB reduced the standards to 20%,  with banks placing the reserves with the CB in terms of the national  currency.  

The Armenian banks issuing corporate bonds are as follows:  Araratbank, Ardshinbank, Prometey Bank, ArmSwissbank, Ameriabank, and  Unibank. The bonds of Araratbank, Ameriabank, Unibank, and  ArmSwissbank are listed on NASDAQ OMX Armenia. Araratbank's four  issues of bonds in terms of US dollars are listed (ARBKB2Ђ, ARBKB2‚,  ARBKB8, ARBKB9) and one in terms of the national dram (ARBKB2‘).   Ameriabank and Unibank have by one issue in terms of US dollars  (AMRBB1 and UNIBB1, respectively). Armswissbank's three issues listed  on the Armenian stock exchange (SWISB1, SWISB2, SWISB3). Ardshinbank  and Prometey Bank took their bonds in foreign exchange to  international exchanges. In particular, Ardshinbank's first issue in  terms of US dollar was listed on Vienna stock exchange and the  successful debut encouraged it to list a larger issue on bonds on the  Irish Stock Exchange.


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Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000