YEREVAN, April 19. /ARKA/. Armenian banks should focus on lending in Armenian dram due to high currency risk raised by national currency devaluation, the head of Armenia’s Union of Banks Ashot Osipyan says.
“Bearing in mind a high exchange rate risk caused by the devaluation of the national currency, Armenian banks should be pretty circumspect today. It is necessary to do everything possible to make lending in drams,” Osipyan said in the interview with ARKA agency.
Osipyan added that they have all preconditions required for fostering growth in AMD lending.
“In Armenia there are different international programs, as those of World Bank, EBDR, IFC, KfW and some of them are considering possibilities to develop some mechanisms for lending in drams,” he clarified.
Osipyan also added that the banks may face increase in interest rates on AMD deposits and decrease on those in USD, as well as a larger number of USD deposits over those in AMD if Armenian dram continues devaluating.
According to Armenia’s National Statistical Service, exchange rate of Armenian dram rose by 0.3% over U.S. dollar at 0.9% tumble in consumer prices in February from January of this year.
There are currently 21 commercial banks in Armenia. –0–
