Exclusive interview of Niclas Lilja,OMX Group Vice President for Corporate Communications, to Mediamax News Agency and the www.banks.am web portal

- It was announced in late April that the Swedish OMX Group will purchase the Armenian Stock Exchange and the Central Depositary. The Armenian Central Bank held talks with OMX for more that a year, during which you held a detailed study of the local market. What peculiarities of the Armenian market the OMX revealed during this period of time?

- It is an early emerging market with limited history. At the same time, it has great interest to develop and the commitment to do so. Pension system and insurance legislation preparation are ongoing examples of the intent to develop.

- In Armenia, it is widely believed that the local mentality hinders the development of securities market. What is your opinion concerning this?

- On the contrary as explained earlier. Commitment is there. Naturally the stakeholders need to have incentives to overcome the hinders.

- It is not, most likely, a secret for you that the volume of “shadow economy” in Armenia, according to various assessments, makes 30-50%, and the development of the securities market is considered by the authorities of the country as one of the strategic directions for cutting down the volume of that “shadow”. Do you consider it realistic the full development of the securities market in a country with such a high share of shadow economy?

- We believe that the financial markets can be developed and contribute to the development of the country. There is a clear need to enchance the legislation and regulations to boost the local economy and capital market.

- Does the arrival of OMX in Armenia mean that the shares of large Armenian companies will be able to enter the international market?

- First we aim to develop the local market, and by doing that making it easier for investors and companies to find each other.

- How will the ordinary consumer benefit from the arrival of OMX in Armenia? For instance, will he/she be able to buy and sell shares of companies, which are quoted on the exchanges of other countries, belonging to OMX?

- First thing is make it possible to invest. Technical barriers have made that quite difficult. Investment decisions should be based on transparent information. If investor can rely on the transparency, the investment can be done timely and smoothly and this is already a big win
to local investors. Gradual increase in liquidity and introduction of new companies are on the list also. Long-term plan is to enable the Armenian investors to reach out to foreign securities.

- As far as we know, OMX also shows interest concerning the market of Georgia. Would you tell us about it, as well as comment on whether you have plans to enter the Azerbaijani market?

- We have already had initial talks with the Georgian exchange in Tbilisi. Interest is there and dialoque will be intesified now. OMX is willing and interested in discussing also with the exchanges in Baku. We aim to create open dialoque with them if the willingness from their side is there.