ARMENIAN CB LEAVES REFINANCING RATE UNCHANGED

ARKA News Agency, Armenia
March 2 2007

YEREVAN, March 2. /ARKA/. On March 2, 2007, the Board of the Central
Bank of Armenia (CBA) made a decision leaving the annual refinancing
rate unchanged – 4.75%.

The CBA Board believes that inflationary pressures are maintained in
Armenia, which is accounted for by economic growth and large-scale
inflow of funds. On the other hand, the CBA Board members pointed out
that the external inflationary pressures were considerably relieved
in January-February 2007.

The CBA Board considers it possible to ensure a ±1.5% corridor within
the planned 4% inflation rate. The CBA Board intends to apply for
the revision of interest rates after the information on inflation
and economic growth has been published.

In February 2007, 0.2% inflation was recorded in Armenia compared to
January 2007, with 1.5% annual inflation recorded in February 2007
compared to February 2006.

–Boundary_(ID_VP43wiZ/e4WJcDlKUPGNcg)–