RA PRIME MINISTER TIGRAN SARGSYAN RECEIVED DIRECTOR OF THE EBRD CAUCASUS, MOLDOVA AND BELARUS COUNTRY OFFICES MICHAEL DAVY AND HEAD OF THE EBRD ARMENIA OFFICE MICHAEL WEINSTEIN

Government of Republic of Armenia Web Site
Wednesday, 29th of October, 2008

Both the Bank’s commitment to Armenia and the cooperation over the
joint programs were highly appreciated on either side. The bilateral
interaction was said to have been developing successfully over the
past few years.

Michael Davy advised that at this point of time, the Bank is working
on the next 3 years’ cooperation strategy which is due to come before
the Board of Directors as early as next January.

As an example of the ever-expanding cooperation, the head of the
Armenian government cited and welcomed the acquisition of a stake in
Ararat Bank by the EBRD and assured that the government was going to
back the European Bank’s activities in our country.

Concerning the above, Michael Davy said this deal was the reflection
of EBRD’s full trust in Armenia’s banking system. He advised that
the European Bank has already invested into 4 Armenian banks and is
cooperating with 8 such local entities altogether.

The parties also touched upon the efforts aimed at eventually
anticipating the adverse effect of the global financial crisis on
Armenia. As assured by Mr. Davy, the EBRD directors are very much
concerned about the implications on EBRD partner countries. In this
regard, the Prime Minister stressed the need for a tangible rise in
small and medium-size business funding. Tigran Sargsyan indicated
that the Armenian market has been analyzed by experts and we have
sufficiently accurate estimates as to how much funding it can absorb
within at least the next three years.

The EBRD representative expressed readiness to work in those areas of
interest to Armenia’s government and welcomed the proposal of focusing
upon the SME. He further mentioned that the cooperation in this sphere
and with the banking sector is prioritized in the new strategy as well.

According to Mr. Davy, an EBRD mission is due to arrive in Armenia
to discuss the new strategy. He expressed hope that the bilateral
cooperation and the joint programs will succeed as a result of such
discussions and collaboration.