Announcement

Collapse
No announcement yet.

President Of Armenia Ratifies Bill On All Armenian Bank

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • President Of Armenia Ratifies Bill On All Armenian Bank

    PRESIDENT OF ARMENIA RATIFIES BILL ON ALL ARMENIAN BANK

    ArmInfo
    2009-01-19 17:58:00

    ArmInfo. President of Armenia Serzh Sargsyan ratified the Bill on
    the All Armenian Bank on January 17.

    Central Bank Chairman Artur Javadyan declared that the bank will
    have a status of an open joint stock company. Central Bank and any
    other subject of the law will come out as the shareholder on behalf
    of the Republic of Armenia. It will become a universal development
    bank. The key goal of the bank will be to contribute to formation
    of the Diaspora potential based on knowledge and competition in
    the international market. The Bank will receive relevant license to
    function as a commercial bank. Armenian Central Bank will control
    over the activity of the All Armenian Bank. The authorized capital
    of the Bank is to be at least 5 billion drams, the standard for
    commercial banks in Armenia. The side of the authorized capital,
    which is envisaged at the level of 100 million dollars or 30 billion
    drams, will be defined in the Bank's business program. The share
    of the government in the authorized capital of the bank will be at
    least 20%, the remaining shares will be offered to representatives
    of business cycles, entrepreneurs, and ordinary citizens including
    non-residents. The Bank will have executive body and directorate. The
    head and the members of the Bank Council will undergo attestation
    by the Armenian CB. A. Javadyan said Central Bank of Armenia plans
    to approve 6 billion drams to the Bank on behalf of the Republic of
    Armenia. The bank will make investments only in profitable projects
    and compete with local commercial banks. The Bank will announce
    its programs at least on 1 November of each year. The program are to
    undergo relevant examination and data on the programs will be available
    at the Bank's website. The Bank will also get an opportunity to take
    big deposits. Management structures will be created at the bank on the
    basis of corporate management principles. The Bank's activity will
    meet the activity of local commercial banks. Thus, annual activity
    of the Bank is to undergo compulsory international audit. The Bank
    will also get opportunity to place funds in the securities market.

    Governmental Council for Competitiveness will supervise the
    activity of the All Armenian Bank. The programs prior to the
    Council for Competitiveness and the Government will become prior
    also to the Bank. These are programs in the sectors of education,
    tourism, health care, science, finance and infrastructures. The
    Bank will receive also certain taxation privileges. In particular,
    it will be exempted from profit tax that will be used to implement
    business-project of Diaspora. In addition, the bank will pay state
    tax for registration and license. In this connection, alterations and
    amendments are proposed in the first reading to the Laws On Income
    Tax, On State Tax and On Banks and Banking Activity. A. Javadyan
    said the Bank will operate outside Armenia and finance projects
    by representatives of Armenian Diaspora. Projects in Armenia will
    be implemented with direct involvement of local commercial banks
    through syndicated loans. Thus, when implemented a 30 billion drams
    project, the Bank will provide 80% of funds, and commercial banks
    will allocate the remaining 20%. In the territory of Armenia the All
    Armenian Bank will not directly participate in financing of projects.
    The Bank will have branches in various states. The Bank will have
    11 members that will receive award fees (if it is a foreign citizen)
    for travel and residence costs etc.. The members of the Bank will be
    Armenian prime minister, finance minister, economy minister, chairman
    of Central Bank, agricultural minister, minister of transport and
    communication and the most prominent representatives of Armenian
    Diaspora representing foreign business-cycles and banks. The bank's
    activity will be transparent. The bank will be found and registered
    in an accelerated regime within 3 months instead of usual 6-12 months
    required for registration of commercial banks.
Working...
X