PM: CBA continues the work on creation of All- Armenian bank

Prime minister of Armenia: Central Bank of Armenia continues the work
on creation of All- Armenian bank

2009-03-13 19:04:00

ArmInfo. At present, Central Bank of Armenia carries out the measures
aimed at implementation of the Law ‘On All-Armenian Bank’ passed by the
Parliament of Armenia, Prime Minister of Armenia Tigran Sarkisyan told
journalists replying to ArmInfo’s question.

According to him, creation of the All-Armenian Bank is of great
importance for financing of all- Armenian programmes and stimulation of
the republic’s export potential. It is especially important for
the Bank to be able to prove itself in the current situation, against
the background of the global financial and economic crisis. He recalled
that the issue of the bank creation has been included in
the agenda of the Competitiveness Council. The bank’s authorized
capital will be formed both at the cost of the state’s and private
investors’ funds. In view of this, the PM marked the importance of
the meetings with representatives of the private business in
Tsakhkadzor, during which the strategy and goals of the bank to be
created were discussed. ‘I think the funds, to be attracted to the
bank’s authorized capital, including from the country’s state budget,
may be directed to implementation of the projects called to mitigate
the negative consequences of the global financial crisis’, T. Sarkisyan
said. In particular, he said, the bank’s funds will be directed to
overcoming of the temporary financial difficulties, creation of new
jobs, growth of the republic’s export potential and use of the whole
world Armenians’ potential. The PM thinks the law was adopted in time
as it will allow to implement new interesting projects.

To recall, the government of Armenia with minimum 20% share in the
capital, the authoritative international financial institutes and
representatives of the private sector will become the founders of
the All-Armenian Bank. The scheduled minimum authorized capital of the
All- Armenian Bank will make up 30 bln drams. The structure of the
bank’s regulatory bodies will include the general shareholders’
meeting, the Board of Directors and the Executive Board (Directorate).
According to the preliminary assessments, the Board of Directors will
consist of 9- 11 members, 5 of which will be representatives of the
government. The All-Armenian Bank, as a financial institute, will be
based on the principles of cooperation of the private and state
sectors. The bank will carry out direct investments, credit extension
(including the syndicated and directed ones), administration of
guarantees, issue of bonds, etc. However, the All-Armenian Bank will
not compete with other local financial structures. The bank’s activity
will be directed mainly to financing, development and analysis of
projects, including collection of information, as well as drawing-up of
business-plans, consulting, implementation of educational programmes,
as well as creation of the project and operation base.

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