Thursday, May 13 2010 19:09
Head of Union Armenian Banks forecasts maintenance of Central Bank's refinancing rate at 7.25% in 2010
ArmInfo. Further reduction of interest rates must boost economic activity in Armenia, Ararat Ghukasyan, Head of the Union of Armenian Banks, told media on Thursday.
He said that interest rates fell 2% in average in the credit market of Armenia in Q1 2010 versus Q1 2009. In fact, the average annual interest on consumer loans is 20%, business loans - 16% and mortgage loans - 14%. A. Ghukasyan said the interests of loans may rise as the Central Bank's refinancing rate has recently grown. He supposes that the current refinancing rate of 7.25% is close to the maximum bar and will me left unchanged till the end of the year.
A. Ghukasyan called the Q1 2010 positive for the banking system of Armenia. Banks ensured growth of all the indicators; in particular, assets of the banking system grew 5.36% for Q1 2010 or by 72bn drams to 1.418 trillion drams (up 24% per year). Provision of crediting grew 7.42% or 54bn drams to 777bn drams for late Q1 2010 (up 20% per year). General obligations of the banking system grew 5.95% (up 25% per year). Total capital grew 3%. Profits for Q1 2010 totaled 6.7bn drams significantly exceeding the indicator for Q1 2009.
Armenian banks provided 150,000 loans for Q1 2010, the share of consumer loans was the largest. Dynamic growth of financial indicators shows businessmen's readiness to implement investment projects, which allows us pining hopes with restoration of sustainable economic growth, A. Ghukasyan said.
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