WORLD FINANCIAL CRISIS TO AFFECT ARMENIA’S FINANCIAL SYSTEM NEXT YEAR

ArmInfo
2008-11-10 13:59:00

ArmInfo. ‘The world financial crisis will probably affect the financial
system of Armenia the next year, though the banking system of Armenia
is rather stable today>, Chairman of the Central Bank of Armenia Artur
Javadyan said at the ceremony of opening of AMERIABANK’s branch in
the NKR’s capital Stepanakert. He said the banks have o problems
with liquidity, moreover, they are rather capitalized, however,
taking into account the possible risks, Armenia’s CB has developed
several preventive scenarios to be implemented if necessary.

As A. Javadyan said, the local banks made the crediting terms more
severe, increasing the interest rates in some cases, though gradual
increase of the interest rate of refinancing by Armenia’s CB also
affected the interests of banking credits conditioned by a risk of
high inflation in the country.

To note, the rate of refinancing was increased by Armenia’s CB since
the beginning of the year from 6% to 7,75%, and growth of interest
rates on banking credits in 3Q made up 2-3% on average.