Armeconombank Does Not Plan To Raise Interest Rates Of Its Credits I

ARMECONOMBANK DOES NOT PLAN TO RAISE INTEREST RATES OF ITS CREDITS IN 2009

Noyan Tapan

Jan 22, 2009

YEREVAN, JANUARY 22, NOYAN TAPAN. "Armeconombank does not plan to
raise the interest rates of its credits in 2009: the current interest
rates will remain until the end of this year," the bank’s CEO David
Sukiasian stated at the January 22 press conference. According to
him, negotiations are under way and the interest rates of deposits
in Armenian drams are likely to rise slightly.

As regards the rumors about the reduction of crediting and nonprovision
of mortgage loans in some cases, D. Sukiasian noted that most of the
funds attracted by Armeconombank have been financial resources received
from international structures. These funds are used to provide credits
for small and medium business, mortgage loans, etc. In his words, there
will be no deviations from these programs. "There was no suspension,
just the terms for mortgage loans have become a bit stricter in
Armenia. Perhaps some Armenian banks have had liquidity problems
and provided less amounts of credits in order to deal with their
problems. However, it would be wrong to call such banks problematic,"
D. Sukiasian underlined.

It was mentioned that in 2008 the average market value of
Armeconombank’s shares grew by 24%. As of January 1, 2009, the overall
capital of the bank exceeded 8.6 billion drams. Its assets made more
than 52 billion drams, while the 2008 profit amounted to 460 million
drams (about 1 million 484 thousand USD).

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