IFC Ready To Purchase Shares Of Armeconombank In Case Of Additional

IFC READY TO PURCHASE SHARES OF ARMECONOMBANK IN CASE OF ADDITIONAL ISSUE

ARKA
June 9, 2008

YEREVAN, June 9. /ARKA/. International Finance Corporation (IFC) is
ready to purchase shares of Armeconombank in case of an additional
issue, the Head of IFC Office in Armenia Nerses Karamanukian said at
the annual stockholders meeting in Armeconombank.

Karamanukian pointed out the successful cooperation of IFC with
the bank.

Particularly, the Corporation provided credit lines to the bank twice
and is satisfied with the results, he said.

Representative of the European Bank for Reconstruction and Development
(EBRD) Irakliy Mekvabishvili, in his turn, stressed that Armeconombank
is a system-forming bank in Armenia’s banking system and that the
bank’s development process is completely reflected in the structure
of its liabilities. He pointed out all possible assistance provided
to the bank by EBRD, particularly the syndicate loans provided with
involvement of major European banks.

The EBRD welcomes the dividend distribution process (annual of 12%)
among the stockholders as of the end of 2007. It is not bad, although
the stockholders would like even more, Mekvabishvili said expressing
hope for improvement of performance by Armeconombank.

Ð~]e also stressed that the EBRD will provide both financial and
corporate management assistance to the bank. "We will make every
effort so that Armeconombank develops and follows a productive course
in its operation," he said.

Armeconombank Open Joint Stock Company was registered on August
26 1991.

More than 75% of the bank’s shares belong to the principal shareholders
– EBRD (25% + 1 share) and the founders of "SIL" concern Sukiasian
family (50.6%).

By March 31, assets of Armeconombank had totalled over 43.2bln drams,
total capital – 8.6bln drams, and net profit 116.6mln Drams by the
end of the first quarter. The bank has 45 branches operating in the
territory of Armenia and Nagorno-Karabakh Republic. -0–

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