Mediamax News Agency, Armenia
June 26 2007

Chairman of Armenian CB believes that the banking system of the
country should demonstrate at least 40% annual growth

Yerevan, June 26 /Mediamax/. Chairman of the Central Bank of Armenia
Tigran Sarkisian believes that to solve the urgent economic tasks,
the banking system of the country should demonstrate at least 40%
annual growth, instead of the present 20-30%.

Mediamax reports that, speaking on June 25 annual session of the
Union of Banks of Armenia (UBA), Tigran Sarkisian pointed out the
necessity of increasing the level of competition in the banking
sphere of Armenia.

The CB Chairman believes that the highest in the world spread of the
attracted and placed means – 10-13% – is the index of low level of
competition. Tigran Sarkisian noted that the CB proposed a number of
steps for the solution of the given problem, among which the increase
of requirements for the capital of the banks up to 5bln drams,
attracting leading foreign banks into the banking system, etc. As a
result, there are already 5 applications received from `Postbank’,
`Gazprombank’, `Byblos Bank’, `Raiffeisenbank’, `Procreditbank’,
which want to start functioning on the Armenian market.

Tigran Sarkisian also singled out the formation of mortgage market as
another important aspect.

`According to our forecasts, in the course of the nearest five years,
the volume of mortgage market in Armenia will reach 350bln drams
instead of the present 30bln drams’, the Chairman of the Central Bank
of Armenia stated.