CENTRAL BANK OF ARMENIA PRESENTS CURRENT SITUATION ON COUNTRY’S FINANCIAL MARKET TO IMF DELEGATION

ARKA
September 12, 2009
Yerevan

YEREVAN, October 12. /ARKA/. On Monday, the board of the Central Bank
of Armenia presented the current situation on the country’s financial
market and in the banking system to the IMF executive directors,
the press office of the Central Bank of Armenia reports.

The Central Bank Chairman Arthur Javadyan told the IMF delegation that
things on Armenian financial market are stable now, and liquidity in
the banking system is abundant.

The stress tests held by the central bank’s specialists showed that
adequacy of banking capitals would considerably exceed the minimal
required benchmark under the worst circumstances.

Javadyan said that the central bank has taken certain steps to mitigate
adverse impacts of the global crisis – the bank has reconsidered
refinancing rate seven times since the beginning of this year and
lowered it 2.75 percentage points.

The government pumped up great amounts of cash into the banking system
to enable banks to lend money.

The central bank widened the range of credit instruments by adding
long-term refinancing loans to short-term loans for banks.

The central bank also intensified its participation on the secondary
state securities market, promoting a wider fiscal policy.

Javadyan also said that National Mortgage Company has already started
operating – it refinances banks ‘ mortgage loans.

The guests welcomed the central bank’s efforts saying these steps
have already proven to be effective, and the high-skilled team has
contributed a great deal to that.

From: Emil Lazarian | Ararat NewsPress