ECONOMIST: AMENDMENTS TO LAW ON SECURITIES MARKET SHOULD BE REVOKED IN ARMENIA
ARKA
Oct 28, 2008
YEREVAN, October 28. /ARKA/. Armenia should revoke the amendments
to the law on regulation of securities market, pro-rector of the
Russian-Armenian (Slavonic) University on Development Edward Sandoyan
said.
It is better not to have a capital market in Armenia at all than
having it formed by population’s deposits, Sandoyan said at "Novosti"
International Press Center Tuesday.
On April 9 2007, Armenian Parliament amended the country’s law on
regulation of securities market, thus, simplified public bidding and
sale of foreign securities in Armenia.
Under the amendments, banks received an opportunity to invest in
securities, which, according to the expert, was a blunder made by
the Central Bank. Yet, it is good that the banks have not taken the
advantage of the amendments yet, Sandoyan said.
The economist stressed that banks should not risk the funds of deposit
holders to earn money. "We are keeping money in banks to ensure safety
of our means, to protect ourselves from inflation and get some interest
income," the expert said.
By the end of September 2008, banks’ aggregate investments in
securities had totaled 88.4bln Drams, including 85bln Drams in
government securities.
Investments in non government securities had totaled 3.3bln Drams or
0.35% of total assets of the banking system.
From: Emil Lazarian | Ararat NewsPress
