THERE ARE ALL OBJECTIVE PREREQUISITES FOR MAKING ARMENIA A REGIONAL FINANCIAL CENTER, PRIME MINISTER OF RA SAYS

Noyan Tapan
Jun 25 2007

YEREVAN, JUNE 25, NOYAN TAPAN. The Armenian banking system is rapidly
integrating into the global banking association and introducing the
best international banking standards, the Armenian prime minister
Serge Sargsian stated during the June 25 annual meeting of the Union
of Armenian Banks.

In his words, today the Armenian banking system is stable, with
confidence in it growing day by day. This is evident from the growth
of the banking system’s indices with respect to GDP as a result of
the introduction of corporate governance mechanisms and the creation
of the following infrastructuires and institutes strengthening
the reliability of banks: the Credit Bureau, the Deposit Return
Guaranteeing Fund and the united payment system.

According to Serge Sargsian, there is still much to be done in the
Armenian banking system in terms of increasing international mediation
indices, particularly, the current ratio of credits to GDP (10%).

The prime minister said that the new program of the government
envisages some programs to be implemented jointly with the Union of
Armenian Banks and the Central Bank of Armenia (CBA). In particular,
these programs aim to make educational and mortgage loans accessible
to young people.

The speaker noted that Armenia should become a regional financial
center, for which there are all objective prerequisites. In the words
of the prime minister, one evidence of it is the fact that foreign
banks are interested in operating in Armenia’s banking system.

S. Sargsian said that the Armenian banking system may participate
in the government-initiated program on the proportional territorial
development of the country. "I think that it is time for the Union
of Armenian Banks and the CBA to think about making one of Armenia’s
small or medium-size cities a financial center. I am sure that this
initiative shall come from the CBA," he noted, adding that Dilijan,
for example, may become such a city.

The prime minister expressed an opinion that there is also work to
be done in the Armenian banking system in terms of promoting the
real sector of the economy through securitization of assets, leasing
and other financial instruments, as well as introduction of modern
mechanisms of management.

Besides, banks should assume certain social responsibility and take
an active part in social programs.