SOUTH CAUCASIAN COUNTRIES COMPETE FOR BECOMING REGIONAL FINANCIAL CENTER

YEREVAN, FEBRUARY 23, NOYAN TAPAN. In the opinion of Chairman of the
Central Bank of Armenia (CBA) Tigran Sargsian, the financial systems
of Armenia, Georgia and Azerbaijan will integrate soon. He also said
at the February 23 press conference that the financial sectors of
these countries are competing for becoming a regional center.

According to T. Sargsian, in this connection Armenia has some
advantages, which is also evident from international ratings of the
financial sectors of the Transcaucasian countries. "In terms of
financial sector reforms, Armenia is one or two steps ahead of Georgia
and Azerbaijan," the CBA chairman noted, adding that among these
advantages are reforms in the banking system and formation of
institutions in the financial sector. He expressed an opinion that the
supervisory system of the Armenian banking secyor is more efficient
than those in Georgia and Azerbaijan. Another advantage pointed out by
T. Sargsian is that the program on development of Armenia’s securities
market to be implemented by OMX AB, a Swedish-Finnish company
providing financial services, is actually a regional program. The CBA
chairman noted that one advantage of Azerbaijan and Georgia is that
participation of big foreign companies in their economies is greater
than in Armenia.

Besides, in T. Sargsian’s words, "they outdo in terms of implementing
large projects of leading companies." Accoprding to him, the fact that
Armenian Cascade Bank has its subsidiary in Georgia allows to compare
closely the banking sytems of Armenia and Georgia. In the words of the
CBA chairman, "Georgia expressed an intention to convene an
international conference, aiming to increase interest of financial
structures in itself and displaying a desire to become a regional
financial center."