Arminfo
2007-02-23 19:55:00

In Armenia securities market is more developed than in Georgia and
Azerbaijan

Armenia is one step ahead of Georgia and Azerbaijan under the regional
program for securities market development, syas President of Central
Bank of Armenia Tigran Sargsyan.

He hopes that Armeconombank, who has got Moody’s Investors Service
rating, will become one of the most active participants in the
program.

To note, this program is carried out in cooperation with OMX
(Stockholm).

Sargsyan says that Armenia has preferred the European model of stock
market development to the American one as it gives commercial banks
access to securities market and allows creating a floor for limited
number of listed emitters on a commercial stock exchange. The list
will comprise several dozens of concerned enterprises.

"We are ready to regard their bonds as state securities, to carry out
REPO transactions with them and to provide them with definite tax
privileges: during the first two years they will pay 50% of the profit
tax and afterwards – even less. They will be given access to IPO and
cheap resources. This is essential for reforms," says Sargsyan.

ArmSwissBank has already applied for participation in the
program. That bank already has necessary risk management system. It
will enjoy even simpler procedure of securities operation than
professional participants do.

To note, OMX has actively joined in the program. It has studied
Armenia’s securities market and has presented its findings. The
content of the findings is kept confident. OMX seeks control over
Armenian Stock Exchange (ArmEx) with a view to integrate stock
exchanges of several countries, including the South Caucasian and
Baltic states.