YEREVAN, May 10. /ARKA/. On Tuesday, Parliament of Armenia adopted changes and amendments to the law “On Pan-Armenian Bank”, according to which issues of regulation of positions in the Council of Board of the bank and the opportunity of placement of bonds for the attraction of additional investment resources is suggested.
Presenting the changes, Deputy Chairman of CBA Nerses Yeritsyan said that the changes are implemented taking into account international experience and the necessity of provision of productive management.
“The main change is that the Board Council will present one person who will combine the positions of executive director and chairman of board of the bank”, he said.
The Bank will also have opportunity to place the bonds and deposit certificates. The resources attracted from the residents should not exceed 100 million drams which will then become an opportunity to attract investments.
As for the activity of the bank, it is already capitalized but its capital should be increased. Discussions should be conducted in this direction with international organizations and investors, new instruments are envisaged allowing to expand the sources of funding of capital.
Currently, activities on the formation of internal procedures by which the Bank will implement its activities are conducted.
The Bank also discusses a part of investment programs included in the agenda of the Fund of National Competitiveness (FNC), as well as discusses the opportunity of detection of more competitive programs in various sectors.
The proposed changes allow Pan-Armenian Bank to attract additional resources for the implementation of different investment programs.
The Head of Standing Parliament Committee on Financial-Credit and Budget Issues Gagik Minasyan, said that the Bank is not allowed to implement ordinary banking activity and provide credits for less than 3 years for concentrating on more long-term strategic goals.
“The changes envisage that minimum size of participation in the capital should be 100 million drams and the policy of the Bank should be approved by the government”, said Minasyan.
Charter capital of the Bank is $100 million, of which $20 million has been already provided by the government. The remaining resources will be replenished on the account of international financial organizations and other private sources.
Chairman of the Bank is the Prime Minister of Armenia Tigran Sargsyan. In December 2010 Advisor to the President Vahram Nersisyants is appointed Executive Director of the Bank.
Pan-Armenian Bank is not a commercial bank. It is a development bank and will provide short-term credits concentrating on long-term development programs. Priorities of its activity are IT sphere, healthcare, education and tourism. ($1 – 372.84 drams). –0–
