European Bank buys shares in Armenian bank

Public Television of Armenia, Yerevan
8 Dec 04

[Presenter] The European Bank [for Reconstruction and Development] has
allocated large funds to Armenia’s Ekonom Bank. However, the European
Bank for Reconstruction and Development [EBRD] will not intervene in
Armenia’s banking sector, as is the case with 45 banks in 23
countries. EBRD experts say that Armenia’s trade sector needs many
credits.

[Correspondent] The EBRD has paid 583m drams [1.219m dollars] for 25
per cent of Ekonom Bank shares plus one share. This is the first large
investment made by the EBRD in the Armenian banking system. This
amount allows the bank to join the Ekonom Bank board.

[Ashot Osipyan, Ekonom Bank chief executive officer] Naturally, as the
owner of the bank’s shares, the EBRD will join the board and take part
in strategic decision-making.

[Correspondent over archive footage] The finance and economy minister
[Vardan Khachatryan] said that after three years of talks, a positive
outcome has finally been achieved.

The Central Bank has already agreed to this. Currently, the securities
committee is preparing to issue the shares to the EBRD.

[Maria Luiza Chigonina, head of the EBRD credit department] It is the
EBRD’s principle not to interfere in the daily activities of other
banks. In order to remove some hurdles in the management of Ekonom
Bank, we will spend 500,000 euros.

[Passage omitted: Correspondent is talking about EBRD projects in
Azerbaijan and Georgia]

[Nikolay Hadjiyski, regional representative of the EBRD] We have
already drawn up, together with other banks of Armenia, three
directions for targeted credits to small and medium-sized businesses.

[Correspondent] The EBRD also has other projects worth 9m euros in
Armenia. The programmes embrace food processing, construction and
other areas.

From: Emil Lazarian | Ararat NewsPress