ArmInfo. High liquidity and capital adequacy in the financial system of Armenia allow to withstand shocks.
Thanks to these buffers, banks, at this stage of the coronavirus pandemic, were able to overcome difficulties and quickly respond to the situation by providing borrowers with credit holidays.
The banking system will continue to be able to serve customers as normal, both borrowers and depositors, if everyone treats the situation with high social responsibility. On May 27, Andranik Grigoryan, Director of the Financial Stability Department of the Central Bank of Armenia, stated this during an online press conference, giving an assessment of the financial system of Armenia in a pandemic.
He emphasized that the Central Bank is ready to provide additional liquidity if such a need arises. A. Grigoryan remarked: "Those the liquidity cushions that banks, credit companies and insurance companies had made it possible for them to be the first to respond voluntarily to the negative phenomena in the economy and financial system that arose due to the pandemic and led to a slowdown in economic activity, the closure of various businesses. "In this regard, he noted that the Armenian banks within the framework of the announced credit holidays from March 13 to this day have reviewed and extended loan obligations of 540 thousand individuals and 17 thousand legal entities, making it possible for 3 months not to make payments on interest payments and the principal amount of the loan. Now banks in accordance with their approaches continue to review the conditions.
At the same time, the representative of the Central Bank said that 2020 began with great achievements, both in terms of financial intermediation and in terms of introducing new financial instruments. Risks, he said, were at a manageable level, because the Regulator was able to assess the potential development of the situation, which could be in the financial system, and respond through macroprudential policy instruments. "I hope that we all, recognizing the risks associated with the pandemic, will show high social responsibility in order to avoid their deepening, thus allowing the financial system to work quietly and continue to serve the economy, guided by the same principles and approaches," he stressed.