YEREVAN, March 17. /ARKA/. The Central Bank of Armenia, the Armenian Ministry of Finance and the European Bank for Reconstruction and Development signed a memorandum on Wednesday to develop the country's capital market, the press office of the central bank reported.

The memorandum implies cooperation in development of dram instruments at the capital market, measures to be taken to remove obstacles to development of capital derivative instruments, introduction of systems stimulating commercial banks' emissions and emissions of banks and credit organizations' securities secured by assets.

The memorandum also implies introduction of the best practice and settlement infrastructure standards and measures to be taken to enhance issuers and investors' awareness of market instruments.

“These measures will contribute a great deal to development of new high-quality investment and risk-hedging instruments and to introduction of settlement and accounting infrastructure that ensures effective sales/purchases of these instruments,” the press release says.

These innovations play a key part not only in diversification of investment of accumulated financial resources in Armenia's pension system, but also in expansion of private investors' participation at securities market.

Arthur Javadyan, the head of the Central Bank of Armenia, expressing appreciation of the results of the EBRD activity in Armenia, stressed the importance of its programs for stimulating smooth development of Armenia's financial system and introduction of international experience and new instruments.

The European Bank for Reconstruction and Development has financed 14 programs in Armenia. Its investmenrts reached $140 million by the end of 2015.

Andre Kuusvek, EBRD Director for Local Currency and Capital Markets Development, said Armenia is among the seven countries for which deeper and larger-scale measures will be taken to stimulate development of their capital markets.

Armenia was included in this initiative of the EBRD for its high potential and its central bank and government's willingness to develop capital market.

In 2010, the EBRD embarked on Local Currency and Capital Markets Initiative aimed at stimulating in countries its lending transactions in local currencies and developing countries' capital markets.

The aim of the initiative is to mobilize local sources of domestic financing reducing dependence on lending in foreign currencies and lessening related risks. --0----