Pan-Armenian Bank not to fund companies affiliated with officials

The Pan-Armenian Bank will start operating in 2011. The contract establishing the bank's working conditions was signed today in the presence of Prime Minister Tigran Sargsyan, who serves as the President of the Board, and the newly appointed Executive Director, Vahan Nersisyants.

The Pan-Armenian Bank will not be engaged in commercial or mortgage transactions; it will be a development bank promoting export of Armenian products, Nersisyants told a news conference.

"As a result, it would create new jobs and enhance people's living standards. We'll also try to establish cooperation with the Diaspora in future," he said.

The bank's total capital makes to $100 million, of which $20 million has already been allocated by the Armenian government.
It is planned to operate the bank through the involvement of private sources only in future.

The Pan-Armenian Bank will fund mainly the private sector, particularly, the companies dealing with high technologies, healthcare, education and tourism.

"The bank will not provide funding to a company affiliated with government officials. Its activities must be independent and transparent," Nersisyants added.

The construction of the building for the bank will be completed in spring. The opening is due on May 1, 2011.