Monday, March 14 2011 18:34

Armenian banks try to retain current rates of loans: Head of Converse Bank


ArmInfo. "If there are no abrupt changes in the economy, the Armenian banks may maintain the interest margin for attracted and placed loans in conditions of the intensifying competition", Executive Director of Converse Bank Tigran Davtyan said when replying to ArmInfo correspondent's question.

The banker pointed out that today the republic faces a contradictory situation: the country still faces high inflation, the restraint of which is the key task of the Central Bank. According to him, the mega-regulator will try to restrain inflation, the refinancing rate will inevitably grow, and this will cause growth in the rates in the banking system as well.

Thus, Davtyan thinks that the banks have two possible options: either increase the current rates in the banking system alongside with raising the refinancing rate, or retain the current rates of loans at the expense of their own resources and own profit. The banker thinks that the first option is low probable because of the intensifying competition. Davtyan said that Converse Bank will try to maintain the interest margin for the attracted and placed loans.

The executive director of Converse Bank pointed out that today the Armenian banks face two main problems: shortage of AMD liquidity and superfluity of the foreign one; and the second problem is connected with the lack of credit worthy borrowers.
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