ARMENIAN PRESIDENT SERZH SARGSYAN: BANKS SHOULD BECOME A LIFE-GIVING SOURCE FOR SMALL AND MEDIUM BUSINESS
ArmInfo
2008-12-05 20:22:00
ArmInfo. Banks should become a life-giving source for small and medium
business, Armenian President Serzh Sargsyan said during a working
meeting with the heads of commercial banks, Friday. The Armenian
presidential press-service told ArmInfo that the Dec 5 meeting was
held to adjust the plans – with due regard for the bankers’ opinion –
in conditions of the deepening global economic crisis.
Sargsyan said that banks will receive state support in case of
financing this sphere. "We should stimulate export. Funds should be
searched constantly, and the attracted investments will be directed
to economy development via banks", he said. "The population trusts
banks and we should use this advantage more efficiently. At the
moment, when the financial crisis has turned into an economic one,
it is necessary to jointly take more effective measures, support the
economy spheres which are capable to secure profit, develop and create
new job sites. Armenia has such businesses and projects which can be
implemented even in case of small financing", the president said.
According to him, Armenia has a lot of factors allowing to dampen
the consequences of the global economic crisis. "We can’t remain
detached and declare that the global crisis will not affect Armenia’s
economy. Armenia has had harder times during the period of its
establishment", he added.
Chairman of the Central Bank of Armenia Artur Javadyan presented
the development of the banking system in 2008 and the trends of the
current situation to the president. He stressed that the banking
system has a high degree of capitalization and liquidity which allows
maintaining the stability and opportunity to neutralize a number of
risks. Mutual confidence is formed in the system, he added. According
to him, the growth of capital, which has been observed since early
2008, and the growth of individuals’ deposits continue. Javadyan
also touched upon the activation of Armenian banks’ cooperation
with international financial institutions. Over the last few months
agreements on attracting long-term resources worth a total of 80 bln
AMD have been concluded with these institutions.
The participants in the meeting came to a conclusion that the correct
use of competitiveness and comparative advantages will give Armenia
an opportunity to dampen the consequences of the crisis.
The meeting also covered issues related to long-term crediting at
low rates, and tasks connected with bid security as real estate and
movable estate. The president discussed with the bankers possible
solutions to the specified problems and heard their opinions and
proposals. He assured the bankers that it will not take long to solve
the problems. Finally, Serzh Sargsyan once again stressed that "the
state has enough opportunities to support the banks, and the banking
system should work at crediting with better enthusiasm".
According to the CBA, as of 1 October 2008, there were 22 commercial
banks and 367 branches in Armenia. The aggregate total capital of the
banking system increased by 9,2% to $711 mln in the third qt 2008,
aggregate assets – by 7,1% to $3.2 bln. In the aggregate credit
portfolio of commercial banks the share of consumer credits make
up $571 mln, trade sector – $417 mln, industry – $279 mln, mortgage
credits – $268.2 mln, construction sector – $124 mln. By 1 October
2008, the net profit amounted to $62.4 mln.