SHARE OF FOREIGN CAPITAL TO RISE IN ARMENIA’S BANKING SYSTEM

Arka News Agency, Armenia
Feb 22 2007

YEREVAN, February 21. /ARKA/. The share of the foreign capital in
the banking system of Armenia will continue to increase, said Tigran
Sargsyan, the Chairman of the Central Bank of Armenia (CBA) presenting
the amendments to the Law "On Bank Secrecy."

He said that at present the foreign capital in Armenia’s banking
system makes about 50%.

"Earlier the share of the foreign capital in Armenia’s banking
system wobbled but constantly rose and made 50%. I think that the
participation of the foreign capital in Armenia’s banking system will
rise," he said.

Sargsyan said that while analyzing the activity of foreign investors
it becomes apparent that the interest of foreign organizations in
Armenia’s banking system is rising and the trend will continue.

21 banks and 299 branches functioned in Armenia before 2007.

As of December 31, 2006, the total capital of Armenia’s banking
system made AMD 524.6bln. The CBA said that the chartered capital
of Armenia’s banking system increased by 32.9% (by AMD 19,809.7mln)
and made AMD 80,107.6mln.

The participation of non-residents in the capital of Armenian banks
rose by 16% and made AMD 35,670.2mln. In fact, 44.52% of the whole
chartered capital falls to non-residents (51% at the beginning of
the year). ($1 = AMD 353.81).