CBA SETS REFINANCING INTEREST RATE AT 5.75%

Noyan Tapan
Dec 04 2007

YEREVAN, DECEMBER 4, NOYAN TAPAN. At the Decemebr 4 sitting, the Board
of the Central Bank of Armenia (CBA) raised the refinancing interest
rate by 0.5%, setting it at 5.75%.

NT was informed by the CBA press service that 2.1% inflation was
registered in November on October 2007, as a result of which the
12-month inflation made 6.8%, exceeding by 1.3% the upper limit of
the target inflation of 4+-1.5%.

According to the CBA Board, in the fourth quarter, high growth
rates of private spending (under conditions of a high infaltion
environment formed under the impact of external shocks) will keep
inflation pressures.

The CBA Board stated that it will be consistent in neutralizing
the secondary impacts of external inflation shocks, as well as the
inflation pressures conditioned by growing demand, and in mitigating
inflation expectations.

By another decision of the CBA Board, Avangard Invest credit
organization CJSC has been registered and licensed.