ARMENIA BANKING SYSTEM TO KEEP ATTRACTING FOREIGN FINANCIAL MEANS

ARKA
April 8, 2008

YEREVAN, April 8. /ARKA/. Armenia banking system is to keep attracting
financial means from the outside, David Sargsyan, chief of Armenian
Central Bank’s unit in charge of financial system policy, said Tuesday
on Public Television.

He said 80-percent growth of industrial and consumer crediting was
recorded in Armenia in 2007.

"It is natural that banks have to obtain necessary financial means
to provide due supply for growing demand. Foreign countries are one
of financial sources", he said.

Sargsyan said that now foreign investments make not a big part of
the financial means attracted by Armenian banks.

In his opinion, if they grow to 30 or 40%, risks will grow as well.

Sargsyan said that recent financial crisis in world markets has
stricken Armenia not so hard, because outside financial means are
little here.

He thinks the key source of the banks resources will be domestic
economy.

He said Armenian banks’ aggregate assets total $2.5 billion while
$1.5bln to 2bln of foreign currency is now in circulation out of banks.

"The country faces problem how to attract them to banking system",
Sargsyan said.

According to ARKA News Agency’s data, financial means attracted from
non-residents totaled AMD 151.6 billion ($498.2 million) by late 2007.

It means non-residents’ means made 26.83% of all resources attracted
by Armenian banks by late 2007 against 18.61% earlier that year.