ITB BECOMES PARTICIPANT OF KfW’s STABLE HOUSE FINANCING MARKET
DEVELOPMENT PROGRAM

YEREVAN, OCTOBER 26, NOYAN TAPAN. The International Trade Bank (ITB)
(Armenia) became one of the participants of KfW Bank’s credit program
on development of stable housing financing market. According a press
release of the bank, the KfW program is expected to be an important
stimulus for development of this sector of the Armenian financial
market and to cause local banks to improve their crediting conditions
by lowering interest rates and extending credit maturity terms. ITB
also intends to provide mortgage credits from its own resources. The
bank developed its program of mortgage crediting and will soon
announce its entrance into this market. It will provide credits for a
period of 10 years and over. The amount of a credit at the initial
stage will not exceed 12 million drams (about 30 thousand USD). It is
envisaged to launch KfW’s credit program on development of stable
house financing market in Armenia in November-December 2006. ITB CJSC
was founded in 1992 on the basis of Menatep-Yerevan Bank CJSC – the
Yerevan branch of Menatep Bank (Russia).

In April 2000, the bank’s shares were acquired by foreign
organizations which later joined Makarios (MG) Holding GMBH company,
and the bank was renamed "International Trade Bank" (ITB). In 2005,
Makarious (MG) Holdings GMBH acquired 99.91% of ITB shares. As of June
30, 2006, the overall assets of the bank made 5.1 bln drams, its
credit portfolio – 1.6 bln drams, overall capital – 2.98 bln drams.

The bank has 4 branches. Makarious (MG) Holdings GMBH unifies about 60
companies registered in Austria, Ireland, Switzerland, Cyprus, several
CIS countries. Makarious Group’s interest in Armenia is not limited to
the banking sector. The group invested 22.5 mln dollars in
construction of North Avenue in Yerevan.