Friday, September 9 2011 13:37
Credit interest rates go on dropping, and deposit interest rates will also drop, chairman of Union of Armenian Banks predicts
Arminfo. The credit interest rates go on dropping, and deposit interest rates will also drop, Chairman of Union of Armenian Banks, Executive Director of ARARATBANK, Ashot Osipyan, made such a prediction today. He explained such prediction by the liquidity of the banking system and the competition between the players of this sector.
Touching on decrease of the refinancing rate by Central Bank, Osipyan said that decrease of the refinancing rate will not lead to growth of inflation and devaluation of the Armenian dram: "at present there is no serious inflation pressure and inflation is within the planned frames", - he said and recalled that increasing of the refinancing rate at the beginning of the current year had a purpose to keep inflation at bay. At present, there is no need of that, for this reason, the refinancing rate was decreased, he said.
He also added that the banking sector has completed the first half of 2011 with growth of all the indices. In particular, the assets of the sector grew by 12,5% and amounted to 1.763 trillion drams. The credits grew by 17,8% and amounted to 1.179 trillion drams. According to the Ranking of Armenian commercial banks prepared by ArmInfo, more than 60% out of the total volume of credits (753.3 bln drams) was the share of the economy crediting. This indicator grew by more than 40% versus the first half of 2010.
Osipyan said that the credits to individual persons grew by 8% in the first half of 2011. The portfolio of the mortgage crediting also grew by about 8%. The liabilities of the banking system of Armenia grew by 14% or 173.7 bln drams over the reported period and amounted to 1.4 trillion drams. The time deposits grew by 58.9 bln drams, including those of individual persons - by 50 bln drams. The banking system of the country finished the first half of 2011 with net profit 21.7 bln drams. According to the data of the Arminfo Ranking, this indicator grew by 39,3% versus the first half of 2010, and by 24% for Jan-June 2011.
Active consumer lending causes double-digit growth in bad loans 
Luys Foundation: Armenian government continues to face challenges in budget planning
Armenia`s brandy and winemaking industry in crisis - economist 
Even at embryonic stage, powerful impetus given to economic activity in energy sector - ENA acting manager 
Armenian NA OKs ENA nationalization 
China preparing to open new chapter of One Belt, One Road initiative with involvement of Armenia - diplomat 
The Merger between "Ardshinbank" CJSC and "Ardshininvestbank" CJSC Has Been Completed
Ticket packets 1.2% of total number of transport tickets in Yerevan