EBRD FORECASTS 10% GROWTH FOR ARMENIA IN 2010

ARKA
May 14, 2010
YEREVAN

YEREVAN, May 14. / ARKA /. Turkey and Armenia are expected to be among
the region’s best performers this year, having staged an impressive
rebound, the European Bank for Reconstruction and Development (EBRD)
said in its latest economic outlook in which it has revised up its
average growth forecasts for the region to 3.7 percent in 2010 from
the 3.3 percent predicted in January.

EBRD said Saturday the recovery path in eastern Europe and the former
Soviet Union is "exceptionally uncertain" at present with risks
tilted to the downside in the short-term given the current volatility
surrounding euro zone sovereign debt.

It expects Turkey’s economy to grow by 5.9% this year and 4% in 2011,
while Armenia’s economy is expected to expand by 10% in 2010 and 3%
in 2011. The Azerbaijani economy is expected to grow by 6% in 2011
and 5% in 2001, Georgian economy is expected to grow by 3.5% and 4.%
respectively, Moldova is expected to see 4% and 4.2% growth while
Ukraine a 4% growth in 2010 and as much in 2011.

Meeting in Zagreb, Croatia, May 14, 15 the shareholders of the EBRD
decided to increase the bank’s capital by 50% and thus pave the way
for increased investment in the Bank over the next 5 years. According
to the official documents of the Bank, this decision was made against
the most serious a recession in the regional economy since the "fall
of communism." Board of Directors approved an increase in bank capital
in the context of full compliance with the EBRD’s strategy for the
period 2011-2015.

Thus the bank’s capital will grow from 20 billion euros to 30 billion
euros through a temporary increase in reserve of capital of 9 billion
euros and the transfer from reserves to paid-up equity interest in
the amount of 1 billion euro.

From: Emil Lazarian | Ararat NewsPress