Armenian Bank as “a Watershed Project”

 “Civilization can be considered to be the nation that is aware of its historical mission … to Armenia today, the main objective is to realize this mission and offer a formula for coexistence of civilizations. It is important to understand that what we want to see yourself, so we will. Our nation today, especially the need audacious plan that would amass the potential for making a breakthrough in the development of the watershed “- so ends Tigran Sarkisian his article” The Armenian civilization as a critical project. “

Anticipated that the project will be part of the All-Armenian bank savings potential of turning the project referred to the Prime Minister.

“The aim of Armenian Bank – to promote a strong, competitive, based on the science building of Armenian identity, enhance its competitiveness in the global market” – defines the RA Law on Armenian Bank.

The Government of the Republic of Armenia 20 November 2008 approved a draft law on Armenian Bank. The law was passed by the National Assembly on Dec. 26, 2008, then January 17, 2009 was approved by the president. In late April, the Central Bank has registered it.

Legislative framework, however, must be complemented by the creation of a practical framework, but the authors of the project have not yet complied with the statements of the date of inception of the bank.

Prime Minister 14 December 2009 expressed the hope that the Armenian bank will start its operations in 2010. This year, October 19, during the summing up of the first pan-Armenian forum of financiers and bankers, the Central Bank Chairman Arthur Javadyan extended the start date of the bank for another year, saying: “Very soon approved the business plan of the bank, after which it can begin its activities. I think that if not at the end of this year, in early 2011 the bank will begin its work, but until those funds are invested Republic of Armenia. “

Initial capital Armenian Bank announced in an amount equivalent to U.S. $ 100 million (about $ 30 billion drams). Armenia has its part to invest $ 20 million.

In addition to the 20-percent share of the Armenian government, the founders of the bank will become the world’s leading organizations and private investors.

According to the newspaper “Capital”, Javadyan reported that negotiations are held with various financial institutions for future participation in the bank.

Armenian bank is a public company, its founders considered the Central Bank and the Republic of Armenia.

The Bank operates in accordance with the principles of corporate governance of the European Organization for Cooperation and Development (OECD).

Armenian bank would deal primarily with the financing of projects identified by the National competition. It is noteworthy that the projects proposed for implementation by the Armenians abroad, may also be financed.

The National Competition of Armenia (SNKA), which is chaired by the Prime Minister, was established on 8 November 2007 in accordance with the decision of the Government № 1324. Purpose SNKA – based on studies of local and global markets to make informed choices to improve the competitiveness of Armenia.

The customer service representative of Public Relations of the Central Bank of Ike Kirakosyan said that currently the choice of executive director of Armenian Bank is engaged in the worldwide known company Egou Zehnder, and developing a business plan is engaged in specializing in this area the Spanish company. These works are in the final stage.

Javadyan in late October announced that the next few days will be appointed head of the Armenian Bank. The name of the director, however, is not reported.

The government’s decision is to involve foreign companies due to the fact that such a bank is unprecedented in type, while the Armenian companies, unfortunately, have no such experience.

Firstly, it is unique in that it participates in the activities of the bank’s state.

Another important feature of the bank associated with a particular type of banking activity, which is different from that of other banks. For example, the Armenian bank does not accept deposits from the public and does not give loans to citizens. Hence it is assumed that the Armenian bank will finance the larger strategic projects.

Following: economic norms enshrined in the law “On banks and banking activity” do not apply to the Armenian bank. The Central Bank defines the legal decisions of these regulations, their size, and other procedures Armenian Bank.

It was said that the bank will operate on a par with commercial banks, but on the principle out-of-rival with them.

These special circumstances of Armenian Bank create unfair competition for other banks operating in Armenia. Thus, perhaps, the second principle is violated, said Javadyan, that “bank in Armenia should not compete with commercial banks.” So it is contrary to the mission itself and the formation of competitive potential, established by law “About the Armenian Bank. If the Central Bank is the founder of the bank, then we can assume that the parent will set condition of the bank based on their interests.

The purpose of the bank to finance projects pan-Armenian values developed within the Council’s strategy of national competition, in particular projects with innovative elements and realized all-Armenian members of the network anywhere in the world. Long-term goal of the bank is to create business relationships based on a powerful information network. In the future the bank will institute funding and dissemination of innovations, new products, projects, standards and training.