ARMENIAN CB BOARD MADE NO CHANGES TO THE REFINANCING RATE LEAVING IT AT 4.75% LEVEL

Mediamax, Armenia
Aug 2 2007

Yerevan, August 2 /Mediamax/. The Board of the Central Bank of Armenia
made no changes to the CB refinancing rate establishing it at the
level of 4.75%.

As Mediamax was told in the press service of the Armenian Central
Bank, the corresponding decision was made by the CB Board during its
meeting today.

In June 2007, as compared to June, there was 3,2% deflation
registered. The index of inflation in the course of one year made
2,3% – 2.9 percent-points less than the same level at the beginning
of the year.

The CB Board noted that the external inflation pressures were mildly
increasing. Despite the fact that the sharp growth of international
prices for grain slowed down in July, the uncertainty regarding the
further prices will preserve until the information about the future
corn corp.

At the same time, the CB press service noted, the influence of internal
factors on inflation in the first half of 2007 was mild.