OMX AB COMPANY SUBMITS BUSINESS PROPOSALS ON DEVELOPMENT OF ARMENIA’S SECURITIES MARKET

Noyan Tapan
Feb 27 2007

YEREVAN, FEBRUARY 27, NOYAN TAPAN. OMX AB, a Swedish-Finnish company
of financial services, has submitted to the Central Bank of Armenia
(CBA) its business proposals on development of the Armenian Stock
Exchange (ASE) and the results of its studies on development of
Armenia’s securities market.

CBA Chairman Tigran Sargsian stated this at the February 27 press
conference.

According to him, OMX submitted a package of 70 measures envisaging
legislative amendments for development of the securities market, which,
in particular, are related to granting tax privileges. "By means of
such tax privileges we will promote operation of those enterprises
which are willing to work in a transparent way and will undergo ASE
listing. It means that these enterprises will come out of the "shadow"
and issue their own securities," T. Sargsian said.

He noted that OMX programs have been discussed and positively assessed
during a consultation with the participation of representatives of
the RA Ministry of Trade and Economic Development and the RA Ministry
of Finance and Economy. It is envisaged that at the initital stage
of the program, OMX will become one of the owners of the ASE and the
Central Depositary, then – their 100% owner.

It was noted that if ASE is managed by OMX, securities listed at the
stock exchange may be sold and placed on international markets.

In response to NT correspondent’s question, CBA chairman said that
OMX uses the machanism of privileges in Baltic countries, getting good
results. In his words, it is expected that at the end of second year
of the OMX program’s implementation, the annual turnover of Armenia’s
securities market will make 500 mln dollars, and at the end of the
fifth year – 5 bln dollars.

To recap, stock exchanges of Sweden, Finland, Copenhagen, Vilnius,
Tallin and Riga operate as part of OMX. OMX is implementing a project
on development of stock markets in Macedonia and plans to implement
such projects in Ukraine and Bulgaria.

As the CBA chairman said previously, studies were done on 25 Armenian
companies which are prepared to ratify the transparency of their
accounting through the conclusion of an audit company and then to be
listed at ASE in accordance with OMX procedure.