Saturday, December 20 2014

Anelik Bank faced no problems with liquidity amid the national dram
hyper-devaluation due to the financial support of its owner, Credit Bank
S.A.L.  (Lebanon), Nerses Karamanukyan,
Chairman of Anelik Bank Board, told ArmInfo.

 

"The latest uneasy situation in the financial
market of Armenia is characteristic to the countries with transitional economy,
but the Central Bank managed to restrain the speculative deals. Anelik Bank
like the other Armenians banks could not but feel anxiety over the situation,
but it did not affect the normal activity of the bank, which continued to serve
its customers on a full scale," Karamanukyan said.  He spotlighted the financial assistance by
the bank's owner in that difficult period. "Having rich experience of
working in instable situation in the Lebanese and Russian financial markets,
Credit Bank S.A.L. also consulted Anelik Bank over the situation. This, along
with the systematic and reasonable policy of the Central Bank, helped the Bank
and the financial market, in general, overcome that destabilization,"
Karamanukyan said.

 

To note, from Oct through Dec 17 AMD dropped against
USD by almost 45%. It was hyper devaluation of the national dram.  On 17 December, the average rate reached 570
AMD/1 USD, which saw a real panic. Food prices began to grow, as the national
currency devaluated. Sugar, flour, and other prices rose drastically. Many food
and other stores refused to sell products since they did not know at what price
to sell their products.

 

Howeverm on 17 December, the Central Bank toughened
the compulsory reservation standards for the raised funds in foreign exchange
from 12% to 24% and already on 18-19 December, the dram appreciated by
25%.  Before that, the CB announced on 8
December that it launches daily interventions to restore the balance in the
exchange market and soften currency fluctuations. The interventions will last till
the end of 2014. Dec 8-17 the CB sold $42mln: $6mln a day Dec 8-12 and $4mln a
day Dec 15-17.  On December 18-19, the
$4 million daily interventions were not demanded by the banks. Nevertheless,
the banks carried out forex deals with each other on 18-19 December ($4 million
and $5.6 million, respectively). This reduced the interbank rate from 480.12 to
458.01 AMD/1USD.  

 

On 1-5 December, the foreign exchange interbank market
showed an unprecedented maximum - $59.3 million. Forex transactions on NASDAQ
OMX Armenia from June up to 19 December totaled $397.150 million with the
exchange rate rising from 407.14 AMD/1 USD to 560 AMD/1 USD and then falling to
442.44 AMD/1 USD.  Nearly $117 million
of total transactions were made in November. In the period from 1 up to 19
December, transactions were made only trice: on 1 Dec - $3.5 million, on 10 Dec
- $100,000 and on 19 December - $450,000, with the exchange rate rising from
438.62 AMD/1 USD to 461 AMD/1 USD and falling to 442.44 AMD/1 USD.  In the retail foreign exchange market of
Armenia on 20 December the exchange rates (purchase/sale) at the swap points
were as follows: 435/465 AMD/1 USD, 525/570 AMD/1 EUR, 7/8.15 AMD/1 RUR. The
highest rates at banks on 20 December were as follows:  454/458 AMD/1 USD, 544/565 AMD/1 EUR, and
7.62/7.86 AMD/1 RUR. 

 

 

In October 2013, the majority shareholder of Anelik
Bank, Credit Bank S.A.L., Lebanon, became the sole owner of the bank and
received the right to Anelik.RU. Since then, retail lending and SME finance
have become the Bank's priorities. AnelikRU Moscow branch was alienated in
December 2012 and transferred under management of Credit Bank S.A.L.