Tuesday, November 8 2011 19:33

Downward trend of interest rates in Armenia to continue in 2012: Head of Union of Banks of Armenia


Arminfo. The strong competition in the Armenian banking system in 2011 has led to 2-3% average reduction in the interest rates, and this downward trend will continue in 2012, Chairman of the Union of Banks of Armenia Ashot Osipyan told journalists on Tuesday.

Unlike Armenia, the international markets demonstrate growth in the interest rates as a result of reduction of the credit markets. "This is a negative and alarming signal showing that the need in alternative resources is growing", Osipyan said.

He thinks that at the moment the world economy is in the "long" phase of the crisis. Therefore, the banks should strengthen the risk management, raise the capital adequacy and display a conservative approach in their activity.

According to the Central Bank of Armenia, as of 1 Jan 2011, the average interest rates of deposits in Armenia made up 8%, and those of loans - 15.4%, having declined to 7.5% and 14.8% respectively by August 1.
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