Annual Report 2019
Central Bank of the Republic of Armenia
Notes to the 2019 consolidated financial statements
30. Risk management (continued)
Credit quality per class of financial assets
Financial assets of the Group, except equity investments are classified by the lowest out of the ratings assigned to the
Group's counterparties by the international rating agencies Fitch IBCA, Moody's and Standard & Poor's. The ratings are
listed below as per the coding of the rating agency Moody's using the rating correspondence table of Bloomberg
information system. Rating AAA is the rating used for identification of highly reliable international financial institutions
such as the Bank for International Settlements.
31 December 2019
In thousands of Armenian Drams
Credit
rating
Amount
% in financial
assets
Amount
31 December 2018
% in financial
assets
Financial assets - neither past due nor
impaired
Placements with banks and other financial
institutions in foreign currency
Nostro accounts
P-1
532,987,070
95.2
309,503,541
89.0
P-3
917,020
0.2
745,740
0.2
NP
479,581
0.1
9,997
0.0
Unrated
218,102
0.0
582,610
0.1
Term deposits
P-1
Unrated
16,802,086
3.0
26,713,063
7.6
5,291,040
0.9
2,422,901
0.7
NP
3,442,970
0.6
2,428,027
0.7
Cash included in the assets under trust
management and margin requirement of
interest rate futures
P-1
Impairment allowance
Total placements with banks and other
financial institutions in foreign currency
2,015
0.0
5,746,255
1.7
(147,896)
(85,277)
559,991,988
100.0
348,066,857
100.0
Financial instruments at fair value through
profit and loss
Government bonds
Aaa
Aa1-Aa3
554,666,536
71.7
339,271,806
48.1
84,510,978
11.0
23,121,447
3.3
State agency bonds and other securities
Aaa
24,001,326
3.1
23,291,590
3.3
Aa1-Aa3
0.0
17,955,383
2.5
Other securities
Aaa
Aa1-Aa3
92,376,738
11.9
244,997,616
34.8
8,154,753
1.1
43,462,831
6.2
Money market instruments
Aa1
Unrated
0.0
629,577
0.1
9,648,011
1.2
12,130,223
1.7
Total financial instruments at fair value
through profit and loss
773,358,342
100.0
704,860,473
100.0
Financial assets measured at fair value
through other comprehensive income,
excluding equity investments
Securities of the Government of the
Republic of Armenia
Ba3
13,189,425
15.0
0.0
Securities of the Government of the
Republic of Armenia
B1
0.0
13,707,676
15.5
Promissory note issued by the Government
Promissory note issued by the Government
Corporate bonds in foreign currency
Total financial assets measured at fair
value through other comprehensive
income, excluding equity investments
Ba3
73,810,843
84.1
0.0
B1
0.0
73,810,843
83.3
Unrated
761,584
0.9
1,067,864
1.2
87,761,852
100.0
88,586,383
100.0
As at 31 December 2019 current accounts and term deposits included in the unrated credit rating category amounting to
AMD 207,768 thousand and AMD 5,291,040 thousand respectively (31 December 2018: AMD 166,690 and
2,422,901 thousand) represent current accounts and placement of the Group's subsidiaries with local commercial banks.
As at 31 December 2019 money market instruments included in the unrated credit category amounting to
AMD 9,648,011 thousand represent securities issued by the Bank for International Settlements and are considered to
have low credit risk (31 December 2018: AMD 12,130,223 thousand).
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