ALL PRECONDITIONS FOR COUNTRY’S HIGHER SOVEREIGN RATING IN ARMENIA

ARKA News Agency, Armenia
Dec 10 2007

YEREVAN, December 10. /ARKA/. All preconditions for gradual increase
of the country’s sovereign rating are available in Armenia, Chairman
of the Central Bank of Armenia (CBA) Tigran Sargsyan stated at a news
conference held jointly with Board Chairman, Bank VTB, Andrey Kostin.

According to him, evidence thereof is that conceptual problems
indicated in the November report of the Moody’s Investors Service
are incorporated in the Armenian Government’s program.

"The report contains an impartial description of the macroeconomic
situation in Armenia. I basically agree with the key estimates. The
problems are indicated in the right way, and our rating corresponds
to our situation," Sargsyan said.

According to him, the report is chiefly aimed at the Moody’s Agency’s
principal clients.

"The principal subscribers for Moody’s and Fitch, which are Armenia’s
partners, are transnational corporations, which, due to the time
and money saving services, get the most impartial information on
the current market situation, our solvency and their prospects for
immediate future," he said.

This year the international rating agency Moody’s Investors Service
confirmed Armenia’s sovereign foreign and national currency ratings
Ba2.

On July 26, 2006, the agency granted foreign and national currency
ratings Ba2 to Armenia.

The country’s medium- and long-term currency bond rating was set at
Baa3, foreign exchange bank deposit rating at Ba3, debt and foreign
exchange bond rating at A3 and foreign exchange bank deposit rating
at Baal.