YEREVAN (ARKA)–President Serzh Sarkisian on Saturday signed into law a bill paving the way for the establishment of a highly anticipated Pan-Armenian Bank that will pool the financial capital of Armenia’s worldwide to bolster the Armenian nation’s global economic competitiveness, reported the President’s press office.
The signing of the bill comes less than a month after its approval by the Armenian Parliament.
The public-private bank will be established to consolidate the resources of Armenian communities worldwide, According to the Chairman of the Central Bank of Armenia (CBA), Arhur Djavadyan, who presented the legislation to Parliament on December 26.
The pan-national bank will function as an open joint stock company that will be founded either by the Armenian Central Bank or the Republic of Armenia. It will function through private and state cooperation and will not compete with other banks functioning in the territory of Armenia, Djavadyan said at the time.
The law will establish the bank with a one-time infusion of $100 million by the CBA and another almost $20 million investment from the government.
It is hoped that the new financial institution will contribute to the development of Armenia by financing projects spearheaded by Diaspora based businessmen.
The bank will focus on investing “money into lucrative programs,” the CBA chairman’said, adding that the new bank may also fund programs pursued by the Armenian government such as health care, tourism, science, education, and financial and infrastructure development.
Djavadyan had said the bank would “implement its programs though commercial banks in Armenia by lending money to them and providing “assistance to small and medium-sized businesses,” through syndicated loans by groups of lenders working together to provide funds for single borrowers. The bank will also refrain from attracting deposits from within the country, focusing instead on attracting deposits from abroad.