EBRD’S SHARE IN ARARATBANK EVIDENCE OF CONFIDENCE IN ARMENIA’S BANKING SYSTEM
ARKA
oct 29, 2008
YEREVAN, October 29. /ARKA/. The share of the European Bank for
Reconstruction and Development (EBRD) in the capital of the Armenian
Araratbank is evidence of confidence in Armenia’s banking system,
EBRD Director for south Caucasus, Moldova and Belarus Mike Davey
told reporters.
It is a serious signal on the EBRD’s part, he said. Davey pointed out
that, in the context of dramatic changes on the world market, the EBRD
has focused its efforts on overcoming the crisis in many countries.
As regards Armenia, the EBRD’s 25% share in Araratbank’s capital is
considered a successful transaction. Davey stressed that it is the
EBRD’s fourth share in Armenia’s banking system.
He pointed out that the transaction is the result of long-lasting
negotiations with the Araratbank management. The EBRD is happy to
have a share in Araratbank’s capital and assist it in developing
Armenia’s economy, Davey said.
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.
The businessman Barsegh Beglaryan, who owns the Flash Company, is
the principal stockholder of Araratbank (70%), the EBRD holds 25%
plus one share, the rest shares being in free circulation. The bank
has 86 shareholders.
The Araratbank OJSC (legal successor of Armcomunicationbank) was
founded on September 2, 1991. On October 31, 1996, the bank was issued
License #4.
On September 30, 2008, the bank’s assets amounted to 27.9bln AMD,
capital reached 5.5bln AMD, profit 552.6mln AMD (in January-September
2008).
On December 7, 1992, Armenia joined the EBRD with a â~B¬10mln share.
The EBRD also has shares in Byblos Bank Armenia, Armeconombank,
ProCredit Bank.
The EBRD is among largest investors in Armenia – â~B¬202mln under 52
programs.
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