ARMENIAN PREMIER, EBRD REPS DISCUSS COOPERATION

ARKA
Oct 30, 2008

YEREVAN, October 30. /ARKA/. RA Prime Minister Tigran Sargsyan held a
meeting yesterday with Mike Davey, Director for South Caucasus, Moldova
and Belarus, European Bank for Reconstruction and Development (EBRD).

The sides made a high appraisal of the EBRD’s activities in Armenia
and dynamically developing cooperation in implementing the programs

The RA Premier pointed out the EBRD’s purchase of Araratbank shares
as an example of developing cooperation. He welcomed the fact and
stressed that the RA Government is ready to render possible assistance
to the EBRD’s activities in Armenia.

A contract for the EBRD’s purchasing 25% plus one share of Araratbank
for $7mln was signed in Yerevan. The transaction is to be completed
within a month, to be followed by placement of shares. As a result,
Araratbank’s authorized capital will reach $24mln against the current
$13mln. During the next three years the bank’s capital is to be
brought up to $50mln.

Mr. Davey pointed out that the transaction is evidence of the EBRD’s
confidence in Armenia’s banking system. He said that the EBRD has
made investment in the capital of four Armenian banks and is now
cooperating with eight banks.

Davey also said that the EBRD is currently elaborating a strategy of
cooperation with Armenia for the next three years. The document is
to be discussed next January by the EBRD Board of Directors.

The sides also discussed measures to prevent the influence of the
international financial crisis on Armenia. Davey pointed out that the
EBRD Board of Directors is concerned over the possible influence of
the crisis on the countries the EBRD cooperates with.

In the context, the RA Premier stressed the importance of additional
funding for small and medium-sized enterprises. He pointed out that
Armenia’s market has been thoroughly studied from this aspect and
the amount of funds it is able to consume during at least three years
has been determined.

Davey stated the EBRD’s readiness to work in the fields of interest
to the Ra Government and stressed the importance of laying emphasis on
SME. He said that the EBRD’s draft project of cooperation with Armenia
indicates the importance of further cooperation with the country’s SME.

Davey also informed the RA Premier that an EBRD delegation is expected
to visit Armenia this December to discuss the strategy. He expressed
hope that joint discussions will guarantee the EBRD’s successful
cooperation with Armenia and efficiency of programs.
From: Baghdasarian