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.