INTEREST RATE UPTREND IN ARMENIA’S BANKING SYSTEM

ARKA
Sep 30, 2008

ARMAVIR, September 30. /ARKA/. Armenia’s banking system is recording
an uptrend in interest rates Ararat Ghukasyan, the General Manager
of Conversebank, told reporters in Armavir yesterday, commenting upon
the influence of similar international trends on Armenia.

"The rise in interest rates will depend on the efficiency of the steps
the countries take to improve the international situation," he said.

Vache Gabrielyan, the Deputy Chair of the Central Bank of Armenia
(CBA), had earlier stated the interest rate changes will depend on
the banks’ financial sources.

The CBA is consistently increasing interest rates. The current annual
refinancing rate is 7.75% against 5.75% early this year. The CBA also
increased the interest rates on deposits attracted from banks from
2.75% to 4.75% and on collateral loans from 8.75% to 10.75%.

The REPO market is recording an uptrend in interest rates as well.