EBRD’S share in Araratbank evidence of confidence in Armenia’s banking system
YEREVAN, October 29. /ARKA/. The share of the European Bank for Reconstruction and Development (EBRD) in the capital of the Armenian Araratbank is evidence of confidence in Armenia’s banking system, EBRD Director for south Caucasus, Moldova and Belarus Mike Davey told reporters.
It is a serious signal on the EBRD’s part, he said. Davey pointed out that, in the context of dramatic changes on the world market, the EBRD has focused its efforts on overcoming the crisis in many countries.
As regards Armenia, the EBRD’s 25% share in Araratbank’s capital is considered a successful transaction. Davey stressed that it is the EBRD’s fourth share in Armenia’s banking system.
He pointed out that the transaction is the result of long-lasting negotiations with the Araratbank management. The EBRD is happy to have a share in Araratbank’s capital and assist it in developing Armenia’s economy, Davey said.
A contract for the EBRD’s purchasing 25% plus one share of Araratbank for $7mln was signed in Yerevan. The transaction is to be completed within a month, to be followed by placement of shares. As a result, Araratbank’s authorized capital will reach $24mln against the current $13mln. During the next three years the bank’s capital is to be brought up to $50mln.
The businessman Barsegh Beglaryan, who owns the Flash Company, is the principal stockholder of Araratbank (70%), the EBRD holds 25% plus one share, the rest shares being in free circulation. The bank has 86 shareholders.
The Araratbank OJSC (legal successor of Armcomunicationbank) was founded on September 2, 1991. On October 31, 1996, the bank was issued License #4.
On September 30, 2008, the bank’s assets amounted to 27.9bln AMD, capital reached 5.5bln AMD, profit 552.6mln AMD (in January-September 2008).
On December 7, 1992, Armenia joined the EBRD with a €10mln share.
The EBRD also has shares in Byblos Bank Armenia, Armeconombank, ProCredit Bank.
The EBRD is among largest investors in Armenia – €202mln under 52 programs. P.T. –0--
