PREMIER: COMMERCIAL BANKS OF ARMENIA ABLE TO MANAGE RISKS

ARKA
Dec 29, 2008

YEREVAN, December 29. /ARKA/. Armenian commercial banks know how
to manage risks, the country’s Premier Tigran Sargsyan said in his
interview to a number of news agencies.

When the risk background strengthens, negative expectations of real
sector enterprises make heads of commercial banks conduct more balanced
and cautious policy, the Premier said. This policy is justified: they
have no right to follow a risky policy in the world crisis conditions,
the Premier said in answering the question of ARKA agency on interest
rates of commercial banks.

The Premier stressed that a state following a competent macroeconomic
policy should manage the risks competently.

"This means that pro-active government policy will reduce the risks in
the country, and if we reduce the risks, commercial banks can reduce
interest rates," the head of the government said.