PM: BANKING SYSTEM WINS CONFIDENCE OF ARMENIAN SOCIETY

ARKA News Agency, Armenia
June 25 2007

YEREVAN, June 25. /ARKA/. The Armenian society has more confidence
in the banking sector, which is rather stable now, said Armenia’s
Prime Minister Serge Sargsyan during the annual meeting of the Union
of Banks of Armenia.

"The advance growth of indices of the banking sector to the
GDP testifies to that, and it is accounted first of all by the
implementation of the principles of corporative management, as well
as by formation of institutes, strengthening the safety of credit
infrastructures, such as deposit guarantee fund, credit bureau,
as well as unified payment system," he said.

According to Sargsyan, Armenia’s banking system integrates into the
world banking community with rapid steps, as well as accepts and
implements the best international standards.

"Together we passed a long way of reformation, the structures, that
did not withstand the competition and constantly violated the rules
of market relations thus creating problems both for the system and
the country as a whole, had to quit the banking system," he said.

Sargsyan pointed out that there is a great field for activity in the
banking sphere.

"The indices of financial mediation are still low, and the unit weight
of credits in the GDP structure does not exceed 10%, which testifies
to the fact that the participation of banks in the development of
Armenia’s economy is not enough," he said.

He pointed out that it is necessary to strive for credit means to be
accessible for every businessman.

"The country’s every citizen should have a possibility to improve his
housing conditions by means of mortgage credit, and the accessibility
of credits for the young generation should contribute to their getting
education," Sargsyan said.