PRESENT BANKING SYSTEM OF ARMENIA DOESN’T CONTRIBUTE TO DEVELOPMENT OF SMALL AND MEDIUM BUSINESS, AN MP FROM ARF DASHNAKSUTYUN SAYS

ArmInfo
2008-11-25 09:28:00

ArmInfo. The present banking system of Armenia doesn’t contribute
to development of small and medium business, Artsvik Minasyan, the
deputy chairman of the parliamentary commission for financial-credit
and budgetary issues, an MP from ARF Dashnaksutyun faction told
journalists, Monday.

According to him, the banking system of the country should transit
to a risk detection system. Minasyan said that commercial banks
themselves could report the existing risks and describe them. On
this basis a conception of their prevention would be worked out,
and this would be controlled by the Central Bank as the regulator.

The earnings of the managers of the Armenian banks are comparable with
the incomes of their colleagues from European states – $10,000-12,000
a month.

Other salaries are incomparably lower. As a result, this money comes
down as a burden on customers’ shoulders. This is just one of the
small "bricks" comprising the high interest rates. As a result, only
a small part of credits reach small and medium-sized companies. The
state must stimulate the use of risk-based crediting, particularly,
tax-free crediting and venture funding.