Ministry of finance: lending rates to start dropping in Armenia in next
months

YEREVAN, August 28. /ARKA/. Lending rates are to start going down in
Armenia in the next months, Armenian Minister of Finance Tigran Davtyan
told a press conference in Novosti international press center.

Davtyan pointed out that interest rates are still high in the Armenian
lending market today due to real risks under the crisis.

But the dynamics started changing, and the vast amount of money
invested by the government in the economy and in the banking system in
particular will allow increasing the offer, Davtyan said.

Hundred millions of dollars will help start reducing loan rates and
make credits affordable to small and medium enterprises, he said. The
process has started but slower than expected, he added.

The current rates hardly promote economic development.

Davtyan stressed the importance of expectations that need to be guided
to a positive course for achieving a rate reduction and for developing
the mortgage market.

According to him, mortgage fund to be created is also to promote
development of the mortgage market. Substantial amounts are to be
allocated to this fund, the Minister said. This will help the banking
system gain `inner’ peace and start active lending process.`0—