Annual Report 2019

Central Bank of the Republic of Armenia Notes to the 2019 consolidated financial statements 11. Other expenses (continued) Amounts of employee compensation, staff training and related payments, depreciation and amortisation and repairs and maintenance expenses for the year ended 31 December 2019 and 31 December 2018 also include respective amounts of expenses of the Group's subsidiaries. 12. Placements and investments with banks and other financial institutions Placements with banks and other financial institutions in foreign currency In thousands of Armenian Drams Placements with banks and other financial institutions in foreign currency Nostro accounts Term deposits Margin requirements of interest rate futures Cash included in assets under trust management Impairment allowance 31 December 2019 31 December 2018 534,601,773 25,536,096 2,015 310,841,888 31,563,991 56,931 5,689,324 (147,896) (85,277) 559,991,988 348,066,857 Total placements with banks and other financial institutions in foreign currency Concentration of placements with banks and other financial institutions in foreign currency As at 31 December 2019 the Group had placements in three banks with individual balance exceeding 10% of total placements. The gross value of these placements as of 31 December 2019 amounted to AMD 458,250,623 thousand (31 December 2018: placements with three banks amounted to AMD 253,141,892 thousand). The term deposits have up to one month remaining maturity with the interest rate up to 2.06% (31 December 2018: up to 2.91%). As at 31 December 2018 AMD 5,689,324 thousand balance of cash included in assets under trust management represent balance maintained by the Bank for settlements under operations with foreign securities and futures within the framework of Agreement on investment management. As at 31 December 2018 AMD 1,451,250 thousand of term deposits denominated in foreign currency are pledged to secure bonds issued by the Group (refer to Note 24). Allowance for impairment of placements with banks and other financial institutions in foreign currency at amortised cost An analysis of changes in the gross carrying value and corresponding ECL in relation to Placements with banks and other financial institutions in foreign currency during the year ended 31 December 2019 is as follows: In thousands of Armenian Drams Stage 1 Total Placements with banks and other financial institutions in foreign currency Gross carrying value as at 1 January 2019 348,152,134 348,152,134 New assets originated or purchased Assets repaid At 31 December 2019 556,509,344 556,509,344 (344,521,594) (344,521,594) 560,139,884 560,139,884 Stage 1 Total In thousands of Armenian Drams Placements with banks and other financial institutions in foreign currency ECL as at 1 January 2019 New assets originated or purchased Assets repaid Changes to models and inputs used for ECL calculations At 31 December 2019 85,277 85,277 72,815 72,815 (85,268) (85,268) 75,072 75,072 147,896 147,896 23 23

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