EBRD HOPES FOR COOPERATION WITH ARMENIA’S PRIVATE SECTOR

ARKA News Agency
Aug 3 2007
Armenia

YEREVAN, August 3. /ARKA/. European Bank for Reconstruction and
Development hopes for cooperation with Armenia’s private sector,
Michael Weinstein, head of EBRD Yerevan Resident Office, said Friday
at a news conference.

He said that the EBRD is manly focused on former Soviet Union
republics, Caucasus, Central Asia and Mongolia.

Weinstein also said that activity enlargement in Armenia is a part
of the bank’s strategy, since growing economy creates greater demand
for financial means, credits and investments.

He said the bank’s key focus is private sector development, for which
90% of EBRD financing for Armenia was allocated.

Weinstein said that EBRD also hopes for enlargement of cooperation
with Armenian banks and non-banking sector.

He said that the EBRD participation in Armenia’s non-banking sector,
particularly in network of supermarkets show intensive development
of this business.

The head of EBRD Yerevan Office hopes that the bank’s work in Armenia
will be more successful in 2007 than in 2006.

"We’d like to embrace also other sectors of financial market – leasing
and factoring – and provide support to stock exchange development",
Weinstein said.

Armenia joined EBRD on December 7, 1992 with EUR 10 million.

The EBRD holds 25% of Armeconombank’s shares + 1 share from Dec 2004.

EBRD is also among Hytex Plastic CJSC, Shen-Concern CJSC Tamara Fruit,
Licvor companies and Star supermarkets network shareholders.

The bank has invested $15mln in these companies.

In 2006, the EBRD-provided financing in Armenia reached the record
high – about EUR 40mln. Twelve projects were implemented in 2006.

The bank’s credit portfolio in Armenia exceeds $100mln now.