BANKS TO PROVIDE MORE CREDITS DUE TO NEW POLICY OF SUPERVISION
By Ara Martirosian, Translated by L.H.

AZG Armenian Daily #164
11/09/2007

Economy

"The new policy of the Central Bank of Armenia is directed to make
softer the supervision of banks, which will contribute to the increase
of the bank credits and spread of bank services in the provinces and
villages of Armenia", announced the Head of the Central Bank Department
of the Financial System Supervision Policy and Analyses Davit Sargsian
at a press conference on September 6. He also mentioned that the
banking system of Armenia passes to its third period of development:
the first period finished in 1995-1996, when trade banks started
their activities in Armenia (at that time 70 banks acted in Armenia),
the international standards were implemented in the system during the
second period, and the aim of the third period is to increase rapidly
the financial mediation: growth of the credit values and availability
of the financial services.

"In the beginning of this year the Central Bank made softer its
policy of realization normatives of banks; due to that policy the
banks increased their credit values by 27 billion AMD", mentioned
Davit Sargsian.

Another package of normative changes will spur on the financial
services in the provinces of Armenia with the help of the itinerant
activity; it means that the representatives of the banks will travel
by the villages and give credits.

The above-mentioned changes will contribute to the growth of the
credit values by 60 per cent.

It is foreseen to record a big growth in the market of mortgage
crediting: an increase of 30-35 percent in the sphere of agricultural
and industrial crediting.

The credit interest will fall down according to the Head of the
Department of the Financial System Supervision Policy and Analyses. It
has a decrease of 0,5 percent in the eight months of this year. The
business credit interests decreased to 14-14,5 percent, and the
consumer credits from 21 percent to 19 percent