Yerevan /Mediamax/. Interview of the Chairman of the Board of “Artsakhbank” Kamo Nersisyan to Mediamax and Banks.am portal##

- What is the development strategy of “Artsakhbank”?

- “Artsakhbank” has been functioning in the banking market of the Nagorno-Karabakh Republic (NKR) for already 12 years, and since 1999, through 4 branches, it has been offering its services in Yerevan. Taking into account the potential and the growth speeds of the bank’s indices, the priority of our strategy is extension of our presence in the banking market of NKR and Armenia.

Starting from 2003, the bank, jointly with the NKR government, has been realizing an assistance program for small and medium enterprises, within the framework of which credits at the total sum of 2629mln drams are already provided for the term of 6 years, at the annual interest rate of 6%.

Starting from 2008, “Artsakhbank” and the NKR government will realize target programs, directed to the development of economy and stirring up mortgage crediting. Within the framework of these programs, business-credits will be provided for the term of 7 years, credits for purchasing and construction of dwellings - for the term of 20 years and at the annual interest rate of 12%, 6% of which will be subsidized by the NKR government.

The funding of the above-mentioned programs will be realized at the expense of the bank means and the target investments of its shareholders.

In conditions of the complex conjuncture in the financial market and the aggravated competition among the Armenian banking establishments, “Artsakhbank” demonstrates results to be proud of.

Starting from 1999 and up to 2007, the assets of the bank grew more than 10 times, the total capital – 8 times, the volume of loan investments – 20 times. In the course of the recent 2-3 years, the bank decreased the average level of interests for credits for 2%, prolonged the crediting terms on average for 4 years.

Considerable improvements took place also in the spectrum of the products offered, technology mechanisms, work of the management and the staff.

- The branches of “Artsakhbank” function in the territory of NKR and in Yerevan. Do you plan to expand your branch network?

- The prospects for the nearest future include opening of two new branches in Yerevan and one in Gyumri.

In 2007, the branches of the bank secured gross profit at the volume of 339mln drams, which makes over one third of the total gross profit of the bank.

- How do the matters stand as to your plans to issue chip plastic cards?

- As before, “Artsakhbank” continues paying great attention to the development of new technologies.

Taking into account the growing demand from the part of the population and the great growth potential of non-cash payments, the development of the direction of plastic cards is defined by our bank as a priority one. Starting from 2000, the bank is a full member of the national ArCa payment system, and starting from 2005 – a member of the international MasterCard payment system, which allows us increasing the volume of the emitted cards each year, as well as improving the quality of services.

We have already carried out a test issue of chip cards, and in the nearest future we plan a mass issue of such cards on all MasterCard products.

- How does the process of compensation of NKR citizens’ deposits in “Artsakh Bank” proceed?

- Starting from 1999, by the decree of the NKR President, at the expense of the state budget means, preliminary compensation of NKR citizens’ deposits has been realized through “Artsakh Bank”. In the period of 1999-2007, the total sum, practically directed to the compensation of NKR citizens’ deposits, made 966.5mln drams.