CBA CHAIRMAN: NO WORLD FINANCIAL CRISIS EFFECTS RECORDED IN ARMENIA

ARKA
Nov 10, 2008

STEPANAKERT, November 10. /ARKA/. Armenia’s financial system has
avoided the effects of the world financial crisis recorded in other
countries, Chairman of the Central Bank of Armenia (CBA) Artur
Javadyan said.

"I have recurrently stated that Armenia’s banking system is stable
and properly controlled; it is overcapitalized and we have sufficient
liquidity," Javadyan told journalists in Stepanakert.

Yet, he stressed that some effects may be recorded next year. "For
this, we have developed several scenarios of preventive measures to
be started by the Central Bank if required," he said.

Javadyan said that Armenian banks learned some lessons from the
world financial crisis – they toughened crediting terms and became
more conservative.

"This, in its turn, created atmosphere when the banks have to somehow
raise interest rates for financing," Javadyan said. He also reminded
that the Central Bank itself, when it encountered high inflation,
gradually raised the refinancing interest rate and this also had its
effect on the bank credit rates.

From: Emil Lazarian | Ararat NewsPress