ARMENIAN CB INTENDS TO SECURE INFLATION AT THE LEVEL OF 4% IN 2007 AND NOT TO ALLOW DRASTIC WEAKENING THE INFLATION PRESSURE

Mediamax Agency, Armenia
Feb 5 2007

Yerevan, February 5 /Mediamax/. The Central Bank (CB) of Armenia
intends to secure inflation at the level of 4% in 2007.

Mediamax reports that the CB Chairman Tigran Sarkisian said this at a
news conference in Yerevan today, while presenting the money-credit
policy for 2007. He noted that in 2006 the inflation made 5,2%,
and the permissible corridor of fluctuations is established as 1,5%.

As the CB Chairman stated, the drastic weakening of inflation pressure
is undesirable for Armenia, as, taking into consideration the high
speeds of the economic growth during the recent 8 years, this can
lead to greater strengthening of the national currency.

Tigran Sarkisian stated that the average index of inflation in
Armenia during the recent 8 years made 2,5%, which is one of the
lowest indices among CIS states.

The CB Chairman noted that in 2006 the Armenian dram strengthened for
9%. In 2005 the mean rate of the dram to the U.S. dollar made 457,
and in 2006, it made 416 drams.

According to Tigran Sarkisian, in 2007, the Central Bank of Armenia
intends to implement new regimes of the rate, harmonious with the
inflation processes. He noted that while calculating the revenues
and the expenditures of the state budget, they will use the rate,
registered a month before the budget draft elaboration.