ARMENIAN LAWMAKERS ADOPT LAW ON ALL ARMENIAN BANK

ARKA
Dec 27, 2008

YEREVAN, December 27. /ARKA/. Armenia’s National Assembly adopted on
Friday the Law on the All Armenian Bank.

The bank is an open joint-stock company said Arthur Javadyan, chairman
of the Central Bank of Armenia, presenting the law to the parliament.

Under the law, the founders of the bank are the Central Bank and (or)
Republic of Armenia.

"Legal entities can also become founders of the bank", Javadyan
said, adding the bank will be established to consolidate Armenian
communities worldwide and use their capacity for strengthening national
competitiveness on the world market.

The All Armenian Bank will get a banking license and will carry out
all types of bank operations.

"All Armenian Bank’s capital must not be less than the total capital
of Armenia’s commercial banks," Javadyan said.

The bank will set a total capital of $100 million (AMD 30 billion)
in its business program. The Central Bank chairman said that the
government will put AMD 6 billion into the All Armenian Bank’s capital.

According to the CBA chairman, some of the Armenian entrepreneurs
and international organizations have already expressed interest in
the matter and are ready to participate in the bank’s capital.

"The bank will stick to certain principles. In particular, it will
invest money only in lucrative programs", Javadyan was20quoted saying.

"Besides, the All Armenian Bank must not compete with commercial
banks in Armenia’s territory," he continued.

He assures the lawmakers that the bank will be in conformity with the
corporate management principles adopted by the European Organization
for Cooperation and Development.

Javadyan also said that the bank will enjoy certain tax preferences. In
particular, it will be exempt from profit tax and state duty for
registration and licensing.

The will implement programs though commercial banks in Armenia by
lending money to them. Javadyan said syndicated credits are likely
as well.

"The bank will not make public offers on attracting deposits inside
the country. Instead, it will attract large deposits from the outside,"
he concluded.

Among the bank’s objectives, the CBA chairman pointed out assistance
to small and medium-sized businesses.

The All Armenian Bank will start functioning in 2009.