CBA CHAIRMAN: ARMENIA’S RATINGS WILL RISE

Noyan Tapan
Dec 10 2007

YEREVAN, DECEMBER 10, NOYAN TAPAN. The rating Ba2 on risks related to
the Armenian government’s fulfilment of its liabilities in Armenian
drams and foreign currencies, the rating Baa3 of the country’s overall
credit risks (Armenia received these ratings in November from Moody’s
Investor Service international rating company) and the analyses made
in this connection reflect objectively the country’s macroeconomic
situation and the sitiation in the financial sector, the chairman
of the Central Bank of Armenia (CBA) Tigran Sargsian expressed this
opinion on December 8.

According to him, taking into account the fact that some provisions
on solutions to the problems presented by Moody’s were included in
the 2008 program of the government’s activity, there is a reason to
believe that Armenia’s ratings will gradually rise. In the words of
T. Sargsian, all prerequisites have been created for it. The report
of Moody’s underlines, in particular, the necessity to implement
reforms in tax administration and pension sectors.

As regards the sharp fluctuations registered recently in Armenia’s cash
foreign currency market, T. Sargsian said that the CBA is conducting
an investigation in this connection. There have been checkings in
commercial banks and exchange offices. "Taking into account that
pre-election passions are running high, we have decided to present
a detailed report after the presidential elections. At that time, it
will be possible to discuss the causes of sharp fluctiations in the
cash foreign crrency market objectively, without emotions and also
to discuss the main players in this market and the schemes used by
them," the CBA chairman stated. He added that they will also analyze
if the cash currency market was replenished with money from abroad,
as well as why this money was attracted and where it is spent.