EBRD TO PAY $7 MLN TO ACQUIRE 25% + ONE SHARE STAKE IN ARARATBANK

ARKA
oct 29, 2008

YEREVAN, October 29. /ARKA/. The European Bank for Reconstruction and
Development (EBRD) is paying $7mln to acquire 25% plus one share stake
in Araratbank, a privately-owned Armenian bank, to support its plans
for further expansion. EBRD Country Director for the South Caucasus
Mike Davey and Araratbank’s principal shareholder Barsegh Beglaryan
today signed a relevant agreement in Yerevan, reported Araratbank’s
CEO Ashot Osipyan.

EBRD will make the final payment in a month, Osipyan said, adding
Araratbank’s capital will reach $24mln against current $13mln. The
bank plans to increase its capital to $50mln in three years.

The banker approved of EBRD’s investments in post-soviet banks which
improve internal policies and procedures, corporate governance and
existing management structure. "I think the agreement is a chief
achievement for the bank and a high appraisal of our activities in
the past years," Osipyan said, adding Araratbank has done considerable
to improve Armenia’s banking system and economy.

Barsegh Beglaryan, president of Flash Ltd, is Araratbank’s 70%
shareholder. EBRD holds 25%+1 of the bank’s shares, with the rest
of the stock being in free circulation. The bank currently has 86
shareholders.

Araratbank (formerly Haykap Bank) was established on September 2,
1991. On October 31, 1996, the bank got N4 License.

Araratbank’s assets totaled 27.9bln drams as of September 30. The
bank’s total capital reached 5.5bln drams, with Q1-Q3 profit amounting
to 552.6mln drams.

According to ARKA, the bank ranks 14th in terms of assets and total
deposits and 15th in terms of total capital. The bank ranks 10th in
terms of profit.

On October 7, 1992, Armenia with EUR 10mln worth share became EBRD
member.

EBRD holds shares in Byblos Bank Armenia, Armeconombank and
ProCreditBank.

EBRD is one of the major partners of Armenia with â~B¬202 worth
investments in 52 projects.

–Boundary_(ID_8WlxKACugwnPejF0FFaJ9w)- –