YEREVAN, DECEMBER 28, NOYAN TAPAN. In late 2006, inflation made 5% in Armenia compared with Decemeber of last year, while the average annual inflation - 3% compared with the average annual inflation of 2005. The Chairman of the Central Bank of Armenia (CBA) Tigran Sargsian said this at the New Year reception held on December 27. During the reception, which was attended by the RA President Robert Kocharian, T. Sargsian stated that this year all the Armenian banks ended with a profit, with the total profit of the banking system making 16 bln drams (about 44 mln USD). The number of credit inmstitutions grew from 7 to 17 and they also ended this year with a profit. The number of insurance companies declined from 23 to 17, however, this "cleansing", in T.Sargsian's words, was accompanied by an increase of the total capital of the other companies. T. Sargsian said that in 2006 the CBA purchased about 250 mln USD by intervening in the currency market, as a result of which the gross foreign assets of the CBA exceeded one billion dollars for the first time. This year the monetary base grew by 40% under conditions of over 13% GDP growth. The CBA chairman spoke about numerous tasks facing the bank in 2007, including promotion of the activity of the securities market (in this issue the CBA is assisted by the Stockholm Stock Exchange), adoption of a new law on insurance, development of the CBA activities concept, creation of a credit bureau, further restriction of cash circulation, introduction of modern principles of corporate governance in the real sector's companies, etc.

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