ALL-ARMENIAN BANK TO BE FOUNDED IN ARMENIA IN 2008-2009

ARKA
June 23, 2008

YEREVAN, June 23. /ARKA/. An all-Armenian bank with an authorized
capital of 30bln AMD ($100mln) is to be founded in Armenia late in
2008-early in 2009.

Speaking at an annual meeting of the Union of Banks of Armenia (UBA),
Chairman of the Central Bank of Armenia (CBA) Artur Javadyan said
that the all-Armenian bank will be an open joint-stock company. It
will be co-founded by the RA Government (20%) and the world’s leading
financial institutions and private investors.

"The mission of the all-Armenian bank, which will operate on the
principle of cooperation between the Government and the private sector,
is funding projects considering the potential of the competitive and
science-intensive all-Armenian network," Javadyan said.

According to him, the bank’s priority is to ensure the funding of
all-Armenian projects elaborated under the decisions made by the
Council of National Competitiveness, as well as projects containing
innovations and implemented in any part of the world by members of
the all-Armenian network.

The CBA Chairman pointed out that the bank will aim at receiving
profits and will not fund low-quality projects or inefficient
organizations.

"The bank will follow the principle of not competing with commercial
financial institutes operating in Armenia," he said.

Javadyan reported that the bank will focus its activities on managing,
funding, elaborating and analyzing projects. The bank’s activities
will include data collection and processing, applied research,
elaboration of business plans, consulting and education projects.

"The bank will also perform the function of project market, that is,
the formation of a demand and supply market under the projects. The
bank will also aim at finding investors, promoting projects,
image-making and all-Armenian cooperation," he said.

Javadyan added that the bank can perform all the aforementioned
functions as part of its banking activities except for the opening
and service of accounts as well as reception of deposits less than
100mln AMD.

The CBA Chairman pointed out that the bank will carry out its
activities due to investments, by acquiring shares in capital, credits,
guarantees, bond issues, as well as by issuing syndicated credits,
making venture investments through establishing venture funds and
acquiring shares.

Javadyan said that a relevant bill on the All-Armenian Bank is expected
to be drafted within one month to be considered by the RA Government.

Thereafter, supposedly in September, it is to be approved by the
RA Parliament.

"The management system at the Bank will meet the best corporate
management standards. Among the Bank’s administrative bodies will be
General Meeting, Bank Board, and an executive body," Javadyan said. He
pointed out that the Board will have nine to fifteen members, with
five of them to represent the RA Government.

From: Emil Lazarian | Ararat NewsPress