EMIL SOGHOMONYAN: BANKING SYSTEM IS STABILE IN ARMENIA

armradio.am
26.08.2009 16:04

The global economic and financial crisis necessitates legislative
reforms in the banking system of Armenia Emil Soghomonyan, chairman
of the Union of Banks of Armenia and Chairman of the Board of the
Prometheus bank said.

The union made a number of legislative initiatives to streamline the
tax laws in the banking system and to settle problems related with
the pledge of movable property.

Mr. Soghomonyan reminded that the Armenian government has recently
submitted to the National Assembly a package of draft laws relating
to services provided by banks. Banking services are exempt from value
added tax, but there are some services that are subject to VAT. "There
is some misunderstanding and we appealed to the National Assembly to
settle those issues," he said.

According to Mr. Sogomonyan, taxation of services provided by not
residents of the country are also seem to be problematic. "This in
particular applies to the payment systems, such as SWIFT, MASTER CARD,
VISA CARD, which should not be subjected to double taxation and tax
payment should be part of the cost of services," he explained.

According to him, the problem of mortgage of movable property is
troublesome today. "Armenia does not have a single inventory for
movable property, which is particularly felt during the crisis,"
he said.

The next proposal is aimed at ensuring a clean field for commercial
banks’ activities, concerned the problem of banking risks, said Mr.
Soghomonyan.