Friday, December 29 2017 07:57
Karina Melikyan

Artur Javadyan: Armenia`s banking system is highly capitalized and has sufficient liquidity to meet the demand of the economy for loans

Artur Javadyan: Armenia`s banking system is highly capitalized and has sufficient liquidity to meet the demand of the economy for loans

ArmInfo. The Central Bank of Armenia continues its consistent work to ensure price and financial stability. This was announced by the chairman of the Central Bank of Armenia in a traditional New Year reception on December 29 summing up the results of 2017. He noted that since 2015 to date the Central Bank has revised the refinancing rate down to 12 times, a total of 4.5 percentage points to today's 6%, taking into account the risk assessments coming from the outside world and the domestic economy.

According to him, the flexible policy of the Central Bank to some extent mitigated the negative impact of external shocks on the Armenian economy, as evidenced by the recorded smallest fluctuation of economic indicators in comparison with the countries of the region. Now there is a stable inflationary environment, which, coupled with the trend of economic activity and the growth of domestic demand, is the basis of economic growth. 2017 is completed with inflation in the range of the target corridor.  "Just two weeks ago, Fitch agency improved the outlook on Armenia's rating from" Stable "to" Positive ", confirming the rating at" B + ", the main factor of which was the CBA monetary policy, once again estimated by Fitch to be reliable, - A. Javadyan noted.

He added that within the framework of stability and development of the financial system, the actions of the Central Bank are aimed at deepening competition between financial organizations, increasing the term of attracted and placed funds (deposits and credits) and their dedollarization, which is the main prerequisite for further growth of lending to the Armenian economy. The reduction in the degree of dollarization of loans and deposits is also noted by rating agencies, which, in their estimation, is necessary from the point of view of ensuring monetary and financial stability. The banking system, characterized as "highly capitalized", is also stable.

"I highly appreciate the flexibility of the activities of financial institutes, especially banks, as a result of which the objectivity of the Central Bank's policy is more rapidly achieving its goals. Over the past 10 years, the ratio of loans to GDP has increased almost threefold, characterizing the growth of the mediator role of the financial system in the economy. Qualitative changes in the development: a significant growth in banking customers and the availability of services offered, a dynamic reduction in lending rates, etc. As a result of the tightening of the minimum size requirement (from January 1, 2017 - AMD 30 billion), banks today are quite liquid and capitalized to meet the demand of the economy for loans," A. Javadyan said.

In the exposure, he noted that the banking system provided almost 10% growth in assets and loans. "2017 will be completed by the growth of key financial indicators and credit companies, insurance companies and other financial organizations. It is noted that the consistent efforts of insurance companies in the formation and formation of insurance culture among the public are noteworthy and the acceleration of the growth rates of the funds accumulated by pension funds, which already reached 105 billion drams, which is 2% of GDP. The professional management of the funds accumulated by these funds made it possible to ensure high profitability," he said.

In terms of the development of the payment and settlement system, Javadyan mentioned the start of ArCa's cooperation with the Russian MIR system, and this intersystem interaction assumes mutual acceptance of cards of national payment systems in the infrastructures of two countries: ArCa cards in Russia, MIR maps in Armenia.

POST A COMMENT
Input digits     


News
Idram at Tech Week 2025Idram at Tech Week 2025
Ucom Subscribers Increasingly Use Internet While RoamingUcom Subscribers Increasingly Use Internet While Roaming
Ardshinbank: the Driving Force of Armenia`s EconomyArdshinbank: the Driving Force of Armenia`s Economy
Li Xinwei: Armenia has potential to increase its presence in the Chinese marketLi Xinwei: Armenia has potential to increase its presence in the Chinese market
Russian partners express concern over sharp increase in flower supplies from Armenia - PashinyanRussian partners express concern over sharp increase in flower supplies from Armenia - Pashinyan
Prime Minister: Railway construction  through Meghri  requires huge financial investmentsPrime Minister: Railway construction  through Meghri  requires huge financial investments
Armenia has already reached out to reputable companies about potential cooperation on ENA matter - PashinyanArmenia has already reached out to reputable companies about potential cooperation on ENA matter - Pashinyan
Infrastructure under management, not control - Pashinyan discusses  outsourcing model in the context of unblocking roadsInfrastructure under management, not control - Pashinyan discusses  outsourcing model in the context of unblocking roads
Pashinyan: State should take over management of Electric Networks of  Armenia CJSCPashinyan: State should take over management of Electric Networks of  Armenia CJSC
Cargo Exchange: In Armenia, demand for import cargo transportation  increased by 20%, while export demand decreased by 14%Cargo Exchange: In Armenia, demand for import cargo transportation  increased by 20%, while export demand decreased by 14%
NA opposition factions  appeal to  CC, challenging constitutionality  of  law on  nationalization of ENANA opposition factions  appeal to  CC, challenging constitutionality  of  law on  nationalization of ENA
Horizon Camp: With AraratBank`s Support - Towards Leadership and Financial LiteracyHorizon Camp: With AraratBank`s Support - Towards Leadership and Financial Literacy
Team launches powerful solar power plant in Gegharkunik with 16  million kWh annual production capacity Team launches powerful solar power plant in Gegharkunik with 16 million kWh annual production capacity
Armenia, Uruguay discuss opportunities for expanding economic  cooperationArmenia, Uruguay discuss opportunities for expanding economic cooperation
Situation with Armenian cognacs  improved in Russia, but challenges  persistSituation with Armenian cognacs  improved in Russia, but challenges  persist
Flower crisis: Armenia, Russia discuss delivery conditions,   producers suffer lossesFlower crisis: Armenia, Russia discuss delivery conditions,   producers suffer losses
Digital platform for public procurement to be introduced in ArmeniaDigital platform for public procurement to be introduced in Armenia
Sofia to host meeting of Armenian-Bulgarian Commission on economic  and scientific-technical cooperationSofia to host meeting of Armenian-Bulgarian Commission on economic  and scientific-technical cooperation
Economist on flower producers` issues: The Armenian government is  caught up in geopolitical games, with repercussions  ultimately  impacting the country`s citizensEconomist on flower producers` issues: The Armenian government is  caught up in geopolitical games, with repercussions  ultimately  impacting the country`s citizens
Etihad Airways to launch Abu Dhabi-Yerevan flight Etihad Airways to launch Abu Dhabi-Yerevan flight 
Gazprom Armenia working at gas transportation system facilitiesGazprom Armenia working at gas transportation system facilities
143 trucks with liquified gas enter Armenia in four days - minister 143 trucks with liquified gas enter Armenia in four days - minister 
1,775 trucks with Armenian apricots enter Russia - minister 1,775 trucks with Armenian apricots enter Russia - minister 
Armenian Ardshinbank planning to acquire HSBC MaltaArmenian Ardshinbank planning to acquire HSBC Malta
Armenia recognizes the need for direct flights with the Netherlands - David Khudatyan
Minister of Economy: 99 trucks with liquefied gas enter ArmeniaMinister of Economy: 99 trucks with liquefied gas enter Armenia
Rosselkhoznadzor to negotiate with competent Armenian agency on   Armenian flower supply issues Rosselkhoznadzor to negotiate with competent Armenian agency on Armenian flower supply issues
Armenia`s energy transformation rating remains unchanged for the past  9 years - Luys FoundationArmenia`s energy transformation rating remains unchanged for the past  9 years - Luys Foundation
In Armenian insurance market  loss ratio for OSAGO decreased to 73.3%  by July 2025In Armenian insurance market  loss ratio for OSAGO decreased to 73.3%  by July 2025
Yerevan Municipality records 88.5% budget performance in first half  of 2025 Yerevan Municipality records 88.5% budget performance in first half  of 2025 
Armenian NPP connected to country`s power grid ahead of schedule Armenian NPP connected to country`s power grid ahead of schedule 
In Armenian interbank foreign exchange market, dollar transactions decreased while ruble transactions increased from July 7-11, 2025In Armenian interbank foreign exchange market, dollar transactions decreased while ruble transactions increased from July 7-11, 2025
Seven organizations from Armenia to resume flower supplies to RussiaSeven organizations from Armenia to resume flower supplies to Russia
14,757 applications submitted under bad loan program 14,757 applications submitted under bad loan program 
Idram and Alipay+ Facilitate Cross-Border QR Payments in Armenia, Connecting Local Merchants with Global Digital Wallet UsersIdram and Alipay+ Facilitate Cross-Border QR Payments in Armenia, Connecting Local Merchants with Global Digital Wallet Users
Solid waste management program should be implemented throughout  Armenia - Vardan Kostanyan Solid waste management program should be implemented throughout  Armenia - Vardan Kostanyan 
Rossotrudnichestvo and South Caucasus Railways sign memorandum of  cooperationRossotrudnichestvo and South Caucasus Railways sign memorandum of  cooperation
Ardshinbank Participated in Tech Week Vanadzor 2025Ardshinbank Participated in Tech Week Vanadzor 2025
Armenia, WIPO discussed ways to enhance collaborationArmenia, WIPO discussed ways to enhance collaboration
Gevorg Papoyan: Effective protection of intellectual property is  crucial for sustainable economic growthGevorg Papoyan: Effective protection of intellectual property is  crucial for sustainable economic growth
Daily regulation reservoirs in Hovnanadzor to serve 9 villagesDaily regulation reservoirs in Hovnanadzor to serve 9 villages
Armenia`s government to develop cooperation with jewelry industry Armenia`s government to develop cooperation with jewelry industry 
ADB to provide Armenia with $3mln for school reconstruction in  Voskepat village ADB to provide Armenia with $3mln for school reconstruction in  Voskepat village 
Armenia`s government to direct huge funds to information and  cybersecurity Armenia`s government to direct huge funds to information and  cybersecurity 
Armenia top ratify EAEU agreement on Permissible Weights, Axle Loads and Dimensions of VehiclesArmenia top ratify EAEU agreement on Permissible Weights, Axle Loads and Dimensions of Vehicles
EIB to provide Armenia with EUR 50mln for Armenia - Resilient Syunik programme EIB to provide Armenia with EUR 50mln for Armenia - Resilient Syunik programme 
"Business Process Optimization with AI" – a Course for the Senior Management of AraratBank
IBRD to provide Armenia with EUR 96.4mln for implementation of Tourism and Regional Infrastructure Development programIBRD to provide Armenia with EUR 96.4mln for implementation of Tourism and Regional Infrastructure Development program
Armenia`s government to direct 1.189bln to co-financing of local communities development programmes Armenia`s government to direct 1.189bln to co-financing of local communities development programmes 
ANC condemns nationalization of ENA, violation of property rights ANC condemns nationalization of ENA, violation of property rights 
EAEU countries to start testing transportation digitalization in first half of 2026EAEU countries to start testing transportation digitalization in first half of 2026
Central Bank: RA Law Central Bank: RA Law "On Crypto Assets" entered into force in Armenia on July 4, 2025
Gohar Barseghyan:  EEC consistently promotes the enhancement of industrial cooperationGohar Barseghyan:  EEC consistently promotes the enhancement of industrial cooperation
Armenia`s foreign trade sees sharp decline after neutralization of diamond and gold re-export factorArmenia`s foreign trade sees sharp decline after neutralization of diamond and gold re-export factor
Every year, Lori region loses $40 million due to untapped tourism  potentialEvery year, Lori region loses $40 million due to untapped tourism  potential
We are going round in circles: Aram Kocharyan on  current IT  situation in ArmeniaWe are going round in circles: Aram Kocharyan on  current IT  situation in Armenia
Net direct foreign investments in Armenia`s economy up Net direct foreign investments in Armenia`s economy up 
RA president signs laws nationalizing ENA CJSCRA president signs laws nationalizing ENA CJSC
Responsible innovations instead of offshores - CB Responsible innovations instead of offshores - CB 
Armenia, Uruguay to increase bilateral trade turnover Armenia, Uruguay to increase bilateral trade turnover 
Read more
Exchange rates
16.07.2025
RUB4.90-0.01
USD383.96-0.16
EUR446.01-2.80
GBP514.74-2.13
CAD279.83-0.92
JPY25.82-0.18
CNY53.48-0.06
CHF479.05-3.57