CENTRAL BANK OF ARMENIA REDUCES REFINANCING RATE BY 0.25PCT DOWN TO 7.25% P.A.

ARKA
May 13, 2009

YEREVAN, May 13. /ARKA/. The Central Bank of Armenia (CBA) brought
the refinancing rate 0.25pct down to 7.25% p.a.

The CBA Press Service reported that the respective decision was
adopted on yesterday’s meeting of the CBA Board.

According to the report, The CBA Board stated that the current
inflationary developments are largely in harmony with the trends
outlined for the period.

Inflation rate, as it was expected, started speeding up in the second
quarter, yet it has not exceeded the upper target limit.

Further inflation will depend on indirect impact of the April rise
in prices for public services to show up within the next months,
as well as on further adjustment of prices for imported goods and
the Dram devaluation that started in early March this year.

According to the press release, the lower GDP level than the balanced
one for the period under review and outer deflationary environment
are expected to scotch influence of the above factors on general
price levels.

Under the current and the expected microenvironment conditions, the
CBA Board considers it worth to continue "broadening" monetary and
credit policy.

3.2% inflation was recorded in Armenia in April against March; annual
inflation grew by 2.1pct up to 3.1% in the period as compared with
the previous month.

Inflation is to reach 4%20(±1.5%) in Armenia by the end of 2009 as
per the state budget.