Thursday, November 14 2013 14:30
Armenia's Central Bank: The banking system of Armenia is rather marketable at present
Arminfo. The economic growth slowed down in Armenia in 2013, and inflation was beyond the frames of the planned scenario. This will undoubtedly lead to further reduction of the earning power of companies and to the growth of consolidation of markets, a member of the parliament from the Prosperous Armenia Party faction, Mikael Melkumyan, said in the National Assembly today.
He said that against such a background, it is very much important for the interest rates to be reasonable, as the circulating funds of companies are rather limited. "It is necessary to form favorable climate for 300 big companies which provide more than 90% of all the budget revenues", - he said.
The head of Armenia's Central Bank, Artur Javadyan, replied that at present the banking system of Armenia is rather marketable and the liquid indices are even higher than the harsh standards of Bazel-3. The commercial banks own solid financial resources, and the competition between them is very much high, he said. Javadyan is confident that this competition will result in decrease of interest rates and in availability of finances. Commercial banks have been strongly fighting for a client. In some cases they decrease the interest rates so much, that they start threatening the financial stability. As a result, Armenian banking sector profits are just 7-8%.
As for crediting, Armenian Central Bank studies separate branches of economy, including urban development and industry. "It is still early to speak about creditability of companies of the given sectors. In some companies the loan liabilities are higher than their local financial potential. Creditability must not be limited only by big taxpayers", - Javadyan said.
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