CBA CHAIRMAN: THREE PROBLEMATIC BANKS IN ARMENIA’S BANKING SYSTEM

Arka News Agency, Armenia
Dec 25 2006

YEREVAN, December 25. /ARKA/. Armenia has three problematic banks
now, Chairman of the Central Bank of Armenia (CBA) Tigran Sargsyan
told ARKA.

Referring to the CAMELS analysis system, Sargsyan said that these banks
received rather low ratings. This is first of all a low management
level as well as money-laundering, which is unacceptable for Armenia,
Sargsyan said.

He pointed out that the CBA is currently exercising a strict
supervision over the three banks.

Sargsyan reported that the CBA is conducting negotiations with the
banks’ owners and prepared a list of measures to implement.

"The owners’ understanding is inspires hope that he problems with
the three banks will be resolved in 2007," Sargsyan said.

He stressed that the CBA does not want the banks’ licenses to be
revoked.

"They have a serious potential for resolving their problems. So we
are not for revoking their licenses, but for the implementation of
the agreements we reached," Sargsyan said.

He added that if the owners fail to meet the requirements, the banks’
licenses will be revoked.

Twenty-one banks are currently operating in Armenia.