AUTHORITATIVE INTERNATIONAL BANKS CONSIDER FINANCIAL MARKET OF ARMENIA AS POTENTIAL PLATFORM: HEAD OF RA CB

ArmInfo
2008-06-23 13:15:00

The authoritative international banks consider the financial market
of Armenia as a potential financial platform and many of them make
specific steps to enter this market, Chairman of RA Central Bank
Artur Javadyan said during the annual meeting of the Union of Banks
of Armenia held on June 21 in Dilijan.

He exampled entry of such big banks as ProCredit German bank, the
Lebanese Byblos Bank, the Russian ‘Troyka Dialogue’ IC and Gazprombank
in the Armenian financial market. ‘Participation of these banks in our
market will contribute to implementation of new banking technologies
and strengthening of the competition in the area of different banking
services’, A. Javadyan emphasized.

Along with it, he said, the events of the latest years, both from
the viewpoint of institutes and regulator indicate that Armenia’s
financial system is at a new crucial development stage. In particular,
he called increase of the range of financial services, extension
of the geography of services, more qualitative and transparent
service of clients. Moreover, he said, an opportunity of extension
of "credits with delivery" to the residents of the country’s remote
villages without opening of branches has become an achievement of the
country’s banking system. ‘Moreover, the year 2007 was unprecedented
for the banking system of Armenia, as well as from the viewpoint of
increase of assets, the banks’ capital and crediting, the volumes of
which grew by over 80% to 206.3 bln drams. In addition, the banks could
control their risks under these conditions’, A. Javadyan emphasized.

Moreover, he said that CB, for its part, also took a number of steps on
renovation and improvement of the country’s financial ector regulation
processes. ‘The Central Bank passed to the new control systems
envisaging implementation of the functional regulation model. Definite
legislative changes also took place, the main of which is adoption
of the Law On the Securities Market, which envisages more flexible
and efficient regulation of the securities market allowing the banks
and credit companies to offer investment services without additional
licenses. This is rather promising for the banks, especially if take
into account entry of the Swedish exchange operator NASDAQ-OMX in
Armenia’s financial market’, A. Javadyan emphasized.

He also said that adoption of the Law On Securitisation of Assets
secured with mortgage loans by RA Parliament is also an important
event in the country’s banking system, that will allow the banks and
other financial companies to solve the problem of long-term money and
contribute to extension of the terms of mortgage loans and reduction
of the interest rates.