Araratbank of Armenia to start “reconstruction” as per international standards

YEREVAN, August 26. /ARKA/. 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 open 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. N.V. –0—