IFC HELPS AMERIABANK IMPROVE RISK MANAGEMENT

PanARMENIAN.Net
October 15, 2010 – 14:15 AMT 09:15 GMT

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.

IFC and Ameriabank signed an International Swaps and Derivatives
Association master agreement, the international standard for risk
management. Under the agreement, UFC will provide Ameriabank with
U.S.-dollar interest-rate swaps and multiple-currency swaps, enabling
the bank to better manage its interest-rate risks on borrowed funds
as well as currency risks for its euro deposit base, and 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
Andrei Shinkevich, Investment Banking Director of Ameriabank.

Thomas Lubeck, IFC Regional Head of the Caucasus said: “This is our
first swap agreement in Armenia are we are happy to be providing
this high-level financial technology. It will provide Ameriabank with
important risk management tool and improve the bank’s sustainability.”

From: A. Papazian