NETHERLANDS BANK TO ASSIST WITH CREATION OF POSTAL BANK IN ARMENIA

Noyan Tapan
Nov 13, 2007

YEREVAN, MOVEMBER 13, NOYAN TAPAN. Having an experience of ensuring the
activities of a system of postal banks, the Netherlands Bank is raedy
to provide technical and advisory assistance to Armenia for creation of
a postal bank. The President of the Netherlands Bank and the Chairman
of the Basel Committee on Banking Supervision Dr. Nout Wellink said
at the November 13 press conference that in the Netherlands, this
system formed as a result of the process similar to the one that is
starting in Armenia.

N. Wellink attached importance to the initiative of Haypost Trust
Management company (Netherlands) to form a postal bank in Armenia – in
terms of creating extra tools for directing the Armenian population’s
savings into the banking system. To recap, about a year ago the Dutch
company assumed the management of Haypost for 5 years. Haypost Trust
Management was created by Postfinance company (Netherlands). It is
envisaged that the Dutch side together with several international
organizations will found a Postbank with the capital of 5 billion drams
(about 14 million dollars) in Armenia.

According to the Chairman of the Central Bank of Armenia (CBA)
Tigran Sargsian, the creation of a postal bank is a new phenomenon
in Armenia. He explained that the country’s banking legislation is
envisaged for regulation of activities of "all-purpose" banks. In
his words, it is necessary to clarify the relations to be established
between Haypost and Postbank and the agreements to be signed between
the sides. Haypost has about 900 branches, which, according to
T. Sargsian, are likely to provide such services as money transfers,
deposit attraction, and sale of insurance policies and other financial
products. "The question is whether the postal bank can fully supervise
these functions and be a supervising agent of the CBA at the same
time," T. Sargsian said.

He informed those present that Haypost invited qualified experts from
various countries, and the reforms of Haypost are being prepared in
cooperation with them. T. Sargsian added that consumers will see the
results of Haypost’s reforms in a year.