LOWER REFINANCING RATE TO HELP BANKS INTENSIFY CREDITING IN ARMENIA

ARKA
July 2, 2009

YEREVAN, July 2. /ARKA/. The lower refinancing rates will allow
Armenian banks to intensify crediting, said Chairman of the Central
Bank of Armenia (CBA) Artur Javadyan.

"We have reduced REPO rates by 1.75 per cent over the last three
months, created new market mechanisms and enabled banks to intensify
their activities on the credit market," Javadyan told reporters.

On June 9, 2009, the CBA decided to reduce the annual refinancing rate
by 0.25% – down to 6%. It was the 4th reduction of the refinancing
rate since March 3, when the CBA returned to a floating exchange rate
and raised the annual refinancing rate by 1% – up to 7.75%.

On April 7, the annual refinancing rate was reduced to 7.5%, and on
May 12 down to 7.25%. The annual refinancing rate was last reduced
on May 22 – by 1%, down to 6.25%.

Javadyan pointed out that the steps inspire hope that the interest
rate situation at the end of this year will be similar to that early
last year.