Saribek Sukiasyan, Chairman of the Board of Armeconombank, speaks about his life experience, formula of successful business, and Bank

Political 29 June, 2024 15:28

In an interview with Zarkerak.am, Chairman of the Board of Armeconombank Saribek Sukiasyan talked about his path, successful business formula and the Bank.

Would you briefly describe Saribek Sukiasyan's life?

We are four brothers in our family, and we grew up in one of Yerevan neighborhoods where the environment was quite harsh. To keep us away from trouble, our father drew us into work from childhood and so instilled in us the aspiration of creating value.

Me and my brothers experienced both the difficulty and the joy of earning money when we were still 12-13 years old. At that age, the day for me started as early as at 6 in the morning, that is we would get up 3 hours before school to go to the factory for work.

So there were five men in our family, and in this regard, my father's words are with me to this day: “With 10 working hands in the family, earning a living should never be a problem”. My father was a creative, fair, and highly respected person, and despite the only 5-grade education he had, people called him by his first name and patronymic as a sign of respect.

Later, when I was a student and had already perceived the work culture and orderliness as I continued to work alongside my studies, I often had discussions both with my father who had overcome many hardships in his life and therefore had more conservative views, and with my elder brother who was more progressive and innovative. This shaped a golden mean in my approaches, and I have been observing it ever since.

Having accumulated a significant experience of everyday work still over my teenage and early adult years, my brothers and I were sufficiently prepared to face the period of market liberalization already in the 90s as the Soviet Union collapsed, so we were able to objectively assess the existing and expected potential of the business environment to make the right start and further strengthen the foundations of SIL Group by efficient management.

How did you decide to enter the banking business?

Armeconombank, the Armenian branch of the Soviet Zhilsotsbank, was one of the first Armenian banks to register with the Central Bank of Armenia in 1991, right after the country gained independence, and was later reorganized as an open joint-stock company. In 1997, our family made a decision to make an equity investment in Armeconombank which was facing serious financial problems at that time, and this led to a significant change in the fate of the Bank. Here, I would like to point out a very important episode that would best reflect my attitude towards the Bank. Traditionally, the management of the businesses owned by our family is clearly differentiated between the Sukiasyan brothers in terms of responsibility, and when acquiring the Bank, its management was entrusted to me by my family. Well aware that the banking sector significantly differs from other businesses owned by the Sukiasyan family and that the Bank's success requires a highly regulated, impartial and independent management, I agreed to take on this responsibility under one condition. my family should not interfere in the management of the Bank in any way. A day later, during a family meeting, my brothers shared the seriousness of my precondition in line with the vision of the Bank’s development and agreed.

What turning point in the Bank's history would you identify?

We had such a turning point in 2002 as we received the first financing from the EBRD, and then in 2004 when it obtained a 25% shareholding in the Bank. At that time, many people still did not even know what this acronym meant, and we appeared one step ahead. Additionally, we received technical support for competent financing of MSMEs and thereby laid the foundation for the establishment and development of this important segment of the economy. EBRD remained a shareholder for 15 years (although the first agreement was for up to 7 years), and this was a long, successful, and mutually beneficial project which, in its turn, was bound to open new doors to the international arena.

To date, the Bank has implemented about 120 successful projects by utilizing nearly USD 640m for lending to MSMEs, and is currently one of the most trusted banks in the region for the leading international counterparties.

Dynamic geopolitical developments have been occurring in Armenia over the recent years. How do you support the development of the country in these conditions and how do you see Armeconombank in, say, 5 years?

First, I would like to state that I am not involved in politics, and I am not involved in any political processes either directly or indirectly. I am exclusively a representative of business, a person who loves his homeland and tries to contribute to the development of the country by working, paying taxes, and implementing best international practices.

Yes, the recent years brought enormous geopolitical and economic changes to our country with many challenges and, at the same time, unprecedented opportunities. The Velvet" Revolution of 2018 had a fundamental transitional effect in terms of liberating the minds of our people, shaping new views, and relying on one's own abilities. This, in its turn, led to changes in people's lifestyle and worldview. The economy has no oligarchic monopoly constraints now, and any intelligent manager can create value through labor.

Of course, to be impartial, I have to mention that these changes caused also challenges related to the lack of human resources and administrative experience, which, for example, is reflected in the combination of often incompetent or inflexible solutions of the state apparatus that initiates and implements legislative changes, and in this direction we still have a lot to do.

Regarding my vision of the Bank in 5 years, I should point out that I have never sought to see the Bank in the first position in the sector. Why? Because a bank holding the first position always draws heavy attention which in this sense makes it highly vulnerable. This would be the case for us.

Armeconombank has always been known for its conservative (but never obsolete) approach, and this is the reason that the Bank has remained strong and stable until today.

Even in 2022 when the Russian-Ukrainian conflict brought huge business opportunities to our country, which our partner Armenian banks extensively used to capitalize huge profits, our Bank, although well aware of a such opportunities and potential gains, refrained from using the readily available toolkit due to the strong responsibility and transparent accountability towards our international partners, shareholders, and customers.