Investments of Turanalem Bank in Armenia may total 30mln USD in 2005

ARKA News Agency
May 11 2005

INVESTMENTS OF TURANALEM BANK IN ARMENIA MAY TOTAL 30MLN USD IN 2005

Below is an exclusive interview of Financial Director, TuranAlem
Bank, Erik Sultankulov to the ARKA News Agency

ARKA: In which CIS countries the TuranAlem Bank has found strategic
partners for banking cooperation, how effective this cooperation is
and what are Your short-term plans in expanding cooperation?

E. Sultankulov: The strategic partners of the TuranAlem Bank are
currently the Moscow `Slavinvestbank’, Kiev `Transbank’, Minsk
`Astanaeximbank’, Omsk `Omskbank’, Kazan `Volzhko-Kamsky joint-stock
bank’, and Armenian `InterInvestBank’. The entry in the capital of
the Georgian `Silk Road Bank’ is expected in the near future. The
Astrakhan bank is considered as a potential partner as well.

ARKA: What are the peculiarities of the TuranAlem Bank’s strategic
task of expanding its presence abroad?

E. Sultankulov: The `TuranAlem Bank’ JSC is the first private bank
implementing a strategy of regional development in the CIS to form a
common bank area between Kazakhstan and the other CIS countries.
By implementing its CIS regional development strategy from 2003 to
2008 the `TuranAlem Bank’ JSC intends to become the CIS largest
private bank. The main task of expanding presence on the CIS
financial service market can be accomplished in the following way:

Positioning of the as a CIS regional bank (a `One Bank-One
Account-Entire CIS’ platform for clients);
Optimization of clientele calculation throughout CIS by transforming
the TuranAlem Bank into a CIS global bank;
Positioning of the TuranAlem Bank as a clearing bank;
The introduction of products and services that are unique on local
markets.

ARKA: What is the basis for country risk assessment in the activities
of the TuranAlem Bank abroad?

E. Sultankulov: The country risk assessment is based on the analysis
of quality and quantity indices. Five groups of criteria are used,
each criterion including a number of parameter-factors. The five
criteria are the political system, banking system, industrial sector,
country’s international rating. Each criterion is divided into a
number of parameter-factors, which make a more detailed analysis
possible and each criterion more substantial.

ARKA: What are the priorities of the TuranAlem Bank’s activities in
Armenia? What projects do You intend to implement in Armenia, and
what is their cost?

E. Sultankulov: The Bank intends to make its possible contribution to
the general development of the country’s financial sector, introduce
innovation banking products, promote Armenia and Armenian companies
in the international investment community thereby encouraging foreign
investments in Armenia. The Bank intends to contribute to the
Armenian population’s well-being by rendering advance retail
financial services elaborated and approved by the TuranAlem Bank.

ARKA: Which sector of Armeia’s economy the TuranAlem Bank is
interested in? In what directions You intend to develop the Bank’s
activities in Armenia, and on what operations will it focus?

E. Sultankulov: The Bank will render a full range of high-quality
banking services that meet international standards. The services will
be focused on such economic sectors as agriculture, food industry,
construction, transport, as well as new ones, such as working of
precious metals and jewelry production, information and communication
technologies.

The priority directions in the Bank’s activities will be:
Medium-term funding aimed at renewal of fixed assets and development
of new production in the country
Trade financing for exporters and importers aimed to raise the volume
and quality of foreign-trade activities of the country’s private
businesses.
Mortgage crediting of the population and small businesses aimed at
medium- and long-term financing of the purchase of real estate in the
country.
Financing of small and middle-sized businesses aimed at developing
this strategically important segment of Armenia’s economy.

ARKA: What will be Your expected share in the Armenian bank and level
of investments?

E. Sultankulkov: The share of the TuranAlem Bank in the capital of
the Armenian `InterInvestBank’ CJSC is 49%, and investments may total
30mln USD in 2005.

ARKA: What new banking technologies does the TuranAlem Bank intend to
offer its clients in Armenia?

E. Sultankulov: A special program will be offered for banks working
with card products by acquiring and emission. The elaboration of
joint co-branded projects and the implementation of a discount
program for holders of plastic cards of the TuranAlem Bank Invest are
expected.

The Bank will offer its clients the payment for public utilities and
mobile communication services through cash dispensers, as well as one
of promising banking technologies for the regional branch network
development – Internet banking.

ARKA: What are the Bank’s plans in crediting. Specifically, does the
TuranAlem Bank intend – and on what scale and terms – to lend
mortgage credits to the population, as well as to businesses?

E. Sultankulov: Mortgage crediting, as well as crediting of small and
middle-sized businesses are one of the most important directions in
the Republic of Armenia. The Bank intends to place mortgage funds
totaling 10mln USD.

ARKA: Do You intend to place Your own bills, bonds and other
securities in Armenia?

E. Sultankulov: The Bank intends to carry out effective operations on
securities markets, placing available resources and securities. P.T.
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