ARMENIA GETS HIGHER RATING

ARKA
July 3

The international rating agency Fitch has raised Armenia’s
international rating from BB- to BB.

"It is of paramount importance now, as it contributes to the creation
of favorable conditions for economic growth and investments in the
country," RA Prime Minister Tigran Sargsyan stated at the Government’s
sitting.

He pointed out that besides the main reasons for a higher rating
assigned to Armenia the Fitch report indicates a positive effect of
the new Government’s initiatives to implement reforms, which will
form a competitive economy in Armenia.

"The report also indicates a consistent macroeconomic policy, which
creates favorable conditions for investments," Sargsyan said.

The RA Prime Minister said that the rating assigned to Armenia
by one of the world’s leading rating agencies contributes to the
Government-implemented reforms. "This is an impartial and serious
signal for all the organizations working on the international financial
market," he said.

On June 5, 2006, Fitch Ratings assigned the issuer default rating in
national and foreign currency (BB-, prospect Stable) to Armenia. The
agency also assigned a short-term rating (B), and a BB- country
ceiling rating to the country.