YEREVAN, September 20. / ARKA /. The new head of EBRD Yerevan Resident Office, Mark Davis, welcomed Thursday the first issue of US Dollar - denominated eurobonds by Armenian government saying it will have a beneficial impact on the financial sector and will attract new investors to the local market.

Speaking at his first news conference in Armenia, Mr. Davis said the banking system of Armenia was better prepared to overcome the consequences of the recent global financial crisis than other former Soviet republics. One of the reasons, according to him, was that the Armenian banking sector was less involved in global processes . “I think that the situation will change over time, also because of Armenian eurobonds ," he said.

He said the EBRD is working intensively with local commercial banks, as the development of financial intermediation has a multiplier effect on the economy. He said EBRD is considering all possibilities of effective cooperation with commercial banks, promoting simultaneously both the development of the private sector and strengthening the capacity of financial institutions. Mr. Davis stressed also that the development of the financial sector has a positive effect on the economy and businesses, and although at the moment interest rates remain high, over time one can expect them to drop. -0-