Tuesday, October 18 2016 15:11

ArmInfo. The state-funded Panarmenian Bank has experienced ideological failure after about 5 years of its activity that have brought no tangible benefit to the economy of Armenia. The Bank will be reorganized and transferred to private investors.  According to ArmInfo's data, the regulator adopted a decision on it yesterday. The bank will be reorganized into a private investment company. No details of the deal are reported so far.

Central Bank of Armenia registered and licensed the Panarmenian Bank on June 2 2011. As it was reported earlier, the statutory capital of the bank was to total $100 million: $20 million were invested by the Armenian Government and $80 million were to be raised from donors and private investors. It was reported earlier that the World Bank planned to provide long-term loans at interest rates below the market ones. Although the Bank was regulated by the Central Bank, the Parliament of Armenia passed a special law regulating the Bank's activity.  Headed by Vahram Nersisyan, the former advisor of the president for economic affairs, previously WB's representative in Armenia, the Bank failed to start its major mission as a Panarmenian financial enterprise and operated as a microfinance organization. It failed to involve Armenian Diaspora representatives and provide long-term financing to export -oriented private enterprises for funding their investment projects. Actually, the Bank has in no way proved itself in the investment field.