Central Bank of Armenia manages to ensure inflation at 5,2-5,5% target
level in 2008

2008-12-30 15:32:00

ArmInfo. Armenia is one of the few countries which managed to ensure
inflation at the 5,2-5,5% target level (according to preliminary data
of the Central Bank of Armenia), CBA Chairman Artur Javadyan said at
the official reception on the results of the year 2008, Monday.
Armenian President Serzh Sargsyan, Armenian Prime Minister Tigran
Sargsyan and the leadership of the
financial-banking sector of Armenia attended the reception.

Javadyan said that despite the numerous challenges of the global
financial crisis, the year 2007 turned out to be quite efficient for
Armenia’s financial system from the viewpoint of development and
stability. The year 2008 demonstrated considerable progress in
qualitative and quantitative improvement of indices and in respect of
institutional development, he added. According to Javadyan, the largest
part of Armenia’s financial system is the banking sector (91% of
assets). In 2008 the banking system assets increased by 33% and
totalled 1.2 trillion AMD, this index being considerably higher than
the indices of 1998 and 1999 (122 bln AMD and 160 bln AMD
respectively). At the same time, thanks to its stability, the banking
system of Armenia attracts foreign investors who ensure inflow of
foreign resources to Armenia in conditions of the global financial
crisis. In the framework of different programs institutional investors
invested over 70bln AMD in Armenia. In 2008 10 commercial banks whose
shares are held by foreign institutional investors increased their
authorized capitals by 34bln AMD. Just to compare, in 1998 the capital
of the banking system of Armenia was just 22bln AMD, in 1999 – 32bln
AMD. In 2008 crediting was steadily growing: it grew by 51% to 210bln
AMD. For the moment the share of credits of total assets exceeds 60%.
Despite decline in crediting worldwide, the credit portfolio of
Armenia’s banking system is stable with the share of standard loans
exceeding 96%. This year the parliament of Armenia has adopted three
important laws protecting the rights of consumers: on financial
ombudsman, on consumer loan and on deposits as well as laws on
all-Armenian bank and financial companies. The latter are meant to
foster business development projects in the "Armenian world."
Three new companies will enter Armenia’s insurance market in 2009:
subsidiaries of Rosgosstrakh and UniRECO (both Russia) and subsidiary
of Alfa Insurance (Ukraine). "We expect that the year 2009 will be more
effective and will see stable development of our financial system,"
Javadyan said.

To remind, presently, there are 22 commercial banks, 23 credit
companies and 11 insurance companies in Armenia with two new banks –
Cedrus and Postbank – and one universal credit company – Aniv – to
start their activities in 2009.

From: Emil Lazarian | Ararat NewsPress