STOCKHOLM STOCK EXCHANGE ASSISTS WITH CREATION OF MODERN SECURITIES MARKET IN ARMENIA

Noyan Tapan
Dec 28 2006

YEREVAN, DECEMBER 28, NOYAN TAPAN. In late 2006, inflation made 5%
in Armenia compared with Decemeber of last year, while the average
annual inflation – 3% compared with the average annual inflation of
2005. The Chairman of the Central Bank of Armenia (CBA) Tigran Sargsian
said this at the New Year reception held on December 27. During the
reception, which was attended by the RA President Robert Kocharian,
T. Sargsian stated that this year all the Armenian banks ended with
a profit, with the total profit of the banking system making 16
bln drams (about 44 mln USD). The number of credit inmstitutions
grew from 7 to 17 and they also ended this year with a profit. The
number of insurance companies declined from 23 to 17, however, this
"cleansing", in T.Sargsian’s words, was accompanied by an increase
of the total capital of the other companies. T. Sargsian said that
in 2006 the CBA purchased about 250 mln USD by intervening in the
currency market, as a result of which the gross foreign assets of the
CBA exceeded one billion dollars for the first time. This year the
monetary base grew by 40% under conditions of over 13% GDP growth. The
CBA chairman spoke about numerous tasks facing the bank in 2007,
including promotion of the activity of the securities market (in this
issue the CBA is assisted by the Stockholm Stock Exchange), adoption
of a new law on insurance, development of the CBA activities concept,
creation of a credit bureau, further restriction of cash circulation,
introduction of modern principles of corporate governance in the real
sector’s companies, etc.