ArmInfo. High level of dollarization is one of the serious challenges for the Armenian economy, economist Vilen Khachatryan said during today's press conference on Armenian economy challenges initiated by the Club of Economic Journalists and Kondard Adenauer Stiftung Company. He noted that dollar component in total credit portfolio of Armenian banks is close to 65% and in deposit portfolio to 70%.
"Whose flag must be displayed over building of the Central Bank of Armenia: Armenian one or US? Or maybe the time has come to put a monument to dollar instead of dram monument? When will we finally realize that our currency is not dollar but dram?" Khachatryan questioned. Expressing resentment, the expert added that international structures providing financing in foreign currency oblige the borrowing side to implement the funds in the same currency the subsidies were provided. This situation on the foreign exchange market makes us "slaves" in any economic fluctuations", he emphasized.
Along with strengthening the national currency, the expert points at other instruments of handling challenges in Armenia's economy, such as applying of import-substituting policy, creating conditions for competitiveness on the market and providing assistance to talented specialists of the country. Khachatrayn also mentioned that significant migration of socially active population from Armenia has negative impact on development of economy.
According to the Central bank of Armenia as of January 1 2016 total credit portfolio of banks in Armenia totaled 2.1 trln AMD 61% (1.3 trln AMD) of which are in dollar terms (dropped by 4.2% over year). Deposit portfolio of the banks totaled 1.95 trln AMD, 69.6 % (1.36 trln AMD) of which are in dollar terms, (increased by 8% over year).