Friday, January 21 2011 19:26
Despite harsh measures on dedollarization of Armenian economy, foreign currency credits still prevail
ArmInfo. Despite the harsh measures on dedollarization of Armenian economy started by the government and Central Bank at the beginning of 2010, the foreign currency credits still prevail in the portfolios of the banks and credit organizations.
As press-service of Armenian Central Bank reported, foreign currency credits prevail thanks to attraction of the funds from abroad and because of the surplus foreign currency funds at the correspondent accounts of Armenian Central Bank. In December 2010 the dollarization level of the Armenian economy reduced by 0,6% as against November. This is conditioned by growth of the dram deposits by 5% and growth of foreign currency deposits by 4%. In December 2010 as against the same period of 2009 the dram deposits grew by 23,7% and foreign currency deposits - by 2,7% (or 7,7% including the dram strengthening), thanks to which the dollarization level reduced by 4,6%.
To recall, among the key events on dedollarization were the April change of the normative of the minimal size of the obligatory reserves placed in the Central Bank. The normative on the currency management was also restored. Earlier, at the end of the 3Q 2009 Armenian Central Bank introduced the special economic normative on the open long currency position - 7% according to which the currency assets of the banks could not exceed the currency obligations. The measures on dedollarization also foresaw hardening of the capital adequacy normative taking into account the tendencies of the foreign currency market development. If earlier, 12% of capital were reserved for the 100% risky credits to cover possible losses, after hardening of the normative - it became -up to 18%
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