Credit interest rate to continue reducing in 2010 in banking system of Armenia

He also added that the banks have started rising rates of the attracted funds since the beginning of 2009. As for the credit interest rates, they started reducing in the second half of 2009 when the funds of the Russian stabilizing credit and supporting credit from the World Bank started arriving Armenia, a part of which is foreseen to credit small amd medium sized business via the banking system. He also said that Ameriabank is taking part in crediting of small and medium-sized business within the frames of the Russian stabilizing credit, having formed the portfolio up to 10 bln drams at present.

He said that in Ameriabank the dollar deposit interest rates are up to 9%, and the dram deposit interest rates - up to 10%. Within the frames of international programmes the dollar credit interest rates are up to 14% and the dram credit interest rates - up to 15%.

According to the results of the September strategical session Ameriabank made the following prediction regarding the key macroeconomic indices: in 2010 the GDP will be preserved at the same position as in 2009; there will be no economical growth, but even if it starts, it will be up to 1%; inflation will be about 8% (+/-1%); real estate will grow about 5%. No sharp changing of foreign currency exchange rate is expected in 2010. Hanesyan thinks that Central Bank implemented the main measures on fluent keeping of the rate in 2009.

According to National Statistics Service of Armenia, the dram deposit interest rates of commercial banks of Armenia rose from 8,24% up to 8,59% in November 2009, which is by 0,88% more than in January. As for the dram credit interest rates, they reduced from 18,66% to 18,65% in November 2009, which is by 2,16% less than in January.

According to the preliminary data of National Statistics Service of Armenia, the GDP in Armenia in January-December 2009 reduced by 14,4%, and in December as against November grew by 18,3%, having amounted to 3165.5 bln drams or $8.7 bln. At the consumer market of Armenia, in Jan-Dec 2009 as against the same period of 2008 inflation amounted to 3,4%, and in December 2009 as against December 2008 inflation was 6,5%, and in December 2009 it was 2%.

As analyst of ArmInfo Karina Melikyan said, at the period before the crisis Armenian Central Bank managed to reduce the dollarization level to 30-40%. Over that period of time the dram deposits prevailed over the dollar ones in the deposit base of the banks (59% and 41% receptively). But the past year sharp devaluation of dram in March (3 March by 22%) and deepening of the crisis and as a result, the growing devaluation expectations absolutely changed the situation. At the beginning of 2009 the share of the foreign currency deposits was 51% and of the dram deposits - 49% in the deposit structure of the banks, this ratio was 73% and 27% respectively in December. In such conditions against the background of the crisis the banks are able to implement dram crediting chiefly thanks to getting of stabilizing funds from external sources.