Armenian parliament approved the package of draft laws, regulating the activity of the securities market

On October 11, 2007 Armenian parliament approved in the final reading the package of draft laws, regulating the activity of the securities market, including the Law “On Securities Market”. Presenting the package, Chairman of the Central Bank of Armenia Tigran Sargsyan reported that the initiative is part of reforms in the financial sector. The concept of the Law On Securities Market is based on a model of developing securities markets in Estonia and Slovenia.

According to Sargsyan the Law on “Securities Market Regulation” acting since August, 2000 has several shortcomings and the adoption of proposed drafts will eliminate them and also will bring Armenia s financial system to conformity with European standards.

According to a new Law Banks and credit institutions will have the right to join the securities market without getting special licenses. Under the Law, the Central Depository of Armenia and the Stock Exchange appear to be commercial organizations.

The approval of the package provides an opportunity for foreign investors entering the market. In particular, in late October early November of 2007, signing of the agreement on the sale of the Armenian Stock Exchange and the Central Depository shares to OMX Group is expected.

Armenian parliament also approved in the second reading today the draft law On making amendments in the law “On income tax”, according to which the companies, registered in offshore zones and functioning in Armenia, should pay an income tax to the State Treasury, already starting from January 1 of 2008. In the previous variant of the law, the date for starting paying the income tax was established for July 1 of 2008.