DEDOLLARIZATION OF ARMENIAN ECONOMY SLOWS DOWN IN EARLY 2008

ARKA
March 14, 2008

YEREVAN, March 14. /ARKA/. Dedollarization of Armenia’s economy slowed
down in early 2008, according to the CBA (Central Bank of Armenia)
Report on Refinancing Rate for March 2008. The Armenian Dram (AMD)
supply remained 64% on February 15, 2008.

AMD deposits increased to 67.8% in 2007 against 80% in 2006. Cash
increase this year totaled 61.3% – 7.1pct increase compared with 2007.

Money supply grew more rapidly this year than in 2007. The reason for
this was the rapid pastes of foreign currency deposits, their annual
increase being 11.7% in January 2008 against 8.6% in December 2007.

According to CBA, economy crediting rate increased at a brisk pace
(82.2% in January against 78% in December).

As regards the financial market development, the interest rate on
national-currency loans was almost the same ion February 17 as in
January 2008.

The interest rate on 181-365-day credits was 19.53% in mid-February
(19.52% in January). The annual interest rate on five-year loans was
13.96% in mid-February (13.85% in January). The annual interest rate
on 181-365-day deposits was 8.23% on February 17 (0.86pct decrease
compared with January).

In February, CBA raised by 0.25pct the refinancing rate in REPO
market. The interest rates went up by 0.32pct in February, the market
average interest rate in REPO market being 6.39%.

During the March 4 meeting, CBA raised the annual refinancing rate
by 0.25pct to 6.25%. The interest rates of attracted deposits and
collateral loans were set 3.25% and 9.25% respectively.