ARMENIA CUTS BY HALF ITS CAPITAL CONTRIBUTION TO BLACK SEA BANK OF
TRADE AND ECONOMIC DEVELOPMENT

YEREVAN, August 20 (Noyan Tapan). Armenia cuts its capital
contribution to the Black Sea Bank of Trade and Economic Development
(BSBTED) from 2% to 1%, or 10 mln SDR. According to the RA Ministry of
Finances and Economy, regardless of the fact that the Black Sea Bank
of Trade and Economic Development has great authority, it was
inexpedient for Armenia to put up great means to the capital of the
bank. It was noticed that other similar international organizations
implement more programs in the republic under the conditions of the
same participation of Armenia in them. The establishment of the
Financial Service jointly with the “Izmirian” Foundation was the
BSBTED only investment in Armenia. A credit line of 4 mln dollars for
direct crediting of the small and medium enterprises in Armenia was
opened by the Fund founders in February 2003. But only several credits
have been given up to now. The Black Sea Bank of Trade and Economic
Development was established by Albania, Bulgaria, Greece, Russia,
Moldova, Romania, Armenia, Georgia, Azerbaijan, Turkey and Ukraine in
1999. The capital of the bank makes about 1 bln SDR (1.325 bln
dollars). The bank contributes to the economic development of the
countries-members and to the deepening of the regional cooperation. It
should be noticed that during the annual meeting of the Council of
Bank Founders, which was held in Tirana (Albania) this year, Armenia
undertook obligations of the chairman for a year, Russia and Moldova
took obligations of co-chairmen (Azerbaijan refused from
chairmanship). At the meeting the representative of Armenia suggested
that the bank should also implement a joint regional program, and it
was apprehended positively. The next similar meeting will be held in
Armenia on June 5, 2005. The “Business Day” with the participation of
foreign investors and representatives of great corporations will be
held within the framework of this meeting.