REPO-RATE TO GROW IN ARMENIA BY THE END 2009 – BEGINNING 2010, HEAD OF THINKS

ArmInfo
2009-09-15 19:23:00

ArmInfo. The REPO-rate will grow in Armenia by the end 2009 – beginning
2010, Chief Executive Officer of Tim Slater told journalists today.

He thinks that growth of the REPO-rate will be conditioned by
possible inflation pressure. At the same time dollar deposits rates
will decrease.

And if the dram deposit rates will not change and the foreign currency
deposits decrease, in that case depositors will convert their dollar
deposits into the dram ones, he said and added that decrease of the
REPO-rates by Central Bank does not directly affect the economy of
Armenia very much as the level of dollarization is very high here
and the main part of deposits is expressed in foreign currency.

According to the data of Armenian Central Bank, on 8 september 2009
the REPO-rate was reduced from 5,25% to 5%. Before that, on 7 July 2009
it was reduced from 6% to 5,5%, on 9 June 2009 – from 6,25% to 6%, 22
My 2009 -from 7,25% to 6,25%, 12 May – from 7,50% to 7,25%, 7 April
– from 7,75% to 7,50%, 3 March – increased from 6,75% up to 7,75%,
10 February – reduced from 7% to 6,75%, 13 January – from 7,25% to 7%.