COVERSEBANK: INTEREST RATE UPWARD TREND RECORDED IN ARMENIAN BANKING SYSTEM

ARKA
Sep 30, 2008

ARMAVIR, September 30. /ARKA/. An interest rate upward trend has been
recorded in Armenian banking system, Executive Director of Armenia's
Conversebank Ararat Ghukasyan told journalists.

Increase in interest rates will depend on efficiency of steps taken
for rectifying the international situation, he said.

Earlier, the Vice-Chairman of the Central Bank of Armenia (CBA) Vache
Gabrielyan said that change in interest rates in Armenia will depend
on sources of bank financing.

CBA is consistently raising interest rates. Currently the annual
refinancing rate is 7.75% against 5.75% in the beginning of the year.

CBA's rates on deposits attracted from banks and pawn loans are also
growing and constitute 4.75% and 10.75% respectively against 2.75% and
8.75% in the beginning of the year. Along with increase in refinancing
rate, interest rates are growing also in REPO market.