ARARATBANK OF ARMENIA TO START "RECONSTRUCTION" AS PER INTERNATIONAL STANDARDS

/ARKA/
August 25, 2009
Yerevan

Araratbank of Armenia will start the bank "reconstruction" process as
required by international standards, Chairman of Board and Executive
Director of Araratbank Ashot Osipyan told journalists Tuesday.

As per the agreement signed in July with National Bank of Canada the
latter is to implement the reconstruction.

The specialists have already made their first visit and outlined
the respective directions; they will start the reconstruction works
in October, Osipyan said. The works are expected to take a year and
a half.

"As a result, we will have a completely new bank with international
features and we will do out best so that our stockholders receive
dividends as a result of the changes," Osipyan said.

Reconstruction will be carried out in all directions, from structural
changes to be coordinated with the best banking organizations, to
risk management and customer relations. The treasury system and other
parameters are also to be reconstructed.

Canadian banks have advanced technologies and banking regulation
today: they are most adapted to the crisis and their experience is
particularly useful to Araratbank, Osipyan said.

The European Bank for Reconstruction and Development allocated 500,000
euros to Araratbank for reconstruction in conformity to international
standards.

Araratbank op en joint stock company (assignee of "Haykap Bank")
was founded on 02.09.1991. On October 31 1996 the bank received a
banking license N4. Among the bank stockholders is the EBRD holding
25%. 74.1% of the authorized stock belongs to principle stockholder
and owner of Flash company Barsegh Beglaryan.