Tatul Manaserian: Commercial Banks Raise Interest Rates Of State-Obt

TATUL MANASERIAN: COMMERCIAL BANKS RAISE INTEREST RATES OF STATE-OBTAINED CREDITS TO AN UNACCEPTABLE EXTENT

NOYAN TAPAN
JULY 31, 2009
YEREVAN

YEREVAN, JULY 31, NOYAN TAPAN. Armenia-based commercial banks cease
operating as a commercial bank as soon as they start to use credit
resources provided by the state. The Advisor to the RA National
Assembly Speaker Tatul Manaserian said at the July 31 press conference
that by receiving credit resources, these banks become state agents,
while a state agent must act in accordance with certain conditions
of the state, which, however, does not happen.

T. Manaserian noted that the state obtains credits with difficulty and
allocates them for some projects. Whereas, the banks raise the interest
rates to an unacceptable extent and dictate their conditions, although
they do not have a moral right to do so. As for the government,
according to T.

Manaserian, it avoids laying down its conditions. "The concession
loan received by a commercial bank at a symbolic interest rate does
not exceed 1%, but when provided by a commercial bank, it amounts to
10-14% which is inadmissible," the economist said, adding that such
connivance of the government is inadmissible as well.

"You must not forget that these are the sums that have doubled our
foreign debt. We should be careful. The inefficient use of a credit
rather than its receiving poses a serious threat," T. Manaserian
underlined.