ARMENIAN EXPERT: CHANGE IN INTEREST AND REFINANCING RATES INEFFECTIVE

ARKA
July 24, 2009

YEREVAN, July 24. /ARKA/. Ameriabank Development Director Tigran
Jrbashyan finds the change in interest and refinancing rates
ineffective.

"Change of interests and the policy of lower refinancing are not so
effective amid the recession, since world experience show that such
a policy transforms not clear on market", Jrbashyan said at a the
press conference held Wednesday.

He pointed out the Government and the Central Bank’s programs as more
effective means to resist the crisis.

The expert is convinced that refinancing and cash support for banks
have more favorable impact on interests than that policy.

Jrbashyan the government’s participation in budget guarantees can
produce higher effect.

On March 3, 2009, the Central Bank of Armenia announced its intention
to lower refinancing rate.

On July 7, the Central Bank downed refinancing rate by 0.5 percentage
points to annual 5.5%.

That was the fifth decrease since March 3, when the bank announced
the policy of floating exchange rates and drove refinancing rate one
percentage point up to 7.75%.

Later, on April 7, the rate was driven down to annual 7.5% and on
May 12 to 7.25%.

On May 22, the rate was lowered 1.0 point to 6.25% and on June 9,
it was downed again by 0.25 points to annual 6%.

"I don’t think Armenia will be able to ens ure zero rate, since it
implies certain problems in struggle against inflation and inflation
forecasts", the representative of the bank said.

The Ameriabank CJSC (former Armimpexbank) was founded in July 1992
using the facilities of the Armenian branch of the USSR Vnesheconombank
(Foreign Economy Bank). On September 8, 1992, the bank received a
banking license from the CBA.

Last August, TDA Holdings limited, affiliated with Troika Dialogue,
Russia’s leading investment company, purchased the bank’s shares.

This May the bank was renamed Ameriabank.