Tue, 1 July
25.1 C
Yerevan
USD: 385.32 RUB: 4.91 EUR: 455.06 GEL: 141.61 GBP: 530.70

Armenian Central Bank revises downward mandatory reserve norm for liabilities in national currency from eight percent to four

YEREVAN, April 16. / ARKA /. Armenia’s Central Bank’s Board has decided today to lower the mandatory reserve norm for liabilities in the national currency, the dram, from 8 percent to 4 percent. The Bank said the new threshold comes into effect from June 12. The mandatory reserve norm for liabilities in foreign currencies is 12 percent

The Central Bank Board said the bulk of loans into the Armenian economy over the past years was channeled into industry, transport, communication and agriculture.

“Loans provided to industrial sector unlike loans stimulating demand, lead to GDP growth and do not form inflationary pressure,’ it said. The Board also said the share of loans provided in the national currency should be increased.

“The lowering of the mandatory reserve norm for liabilities in drams will allow banks to increase their free monetary funds in the national currency, to cut the cost of attracting cash resources in drams and raise their availability,’ the bank said in a press release today.

The Central Bank Board said this downward revision will in turn stimulate banks to increase the amount of loans in drams and boost also demand for government bonds. It will also help bring down market interest rates.

The Bank said also the move is supposed to help implement a string of measures to reduce the dependence of the economy on US Dollars.

According to Central Bank data, as of late December 2012 the banks’ outstanding loans to agricultural sector stood at 32.1 billion drams and an equivalent of 69 billion drams in foreign currency. The amount of outstanding lending to processing sector stood at almost 40 billion drams and the equivalent of 126 billion drams in foreign currency. The amount of lending to communications sector stood at 1.5 billion drams and the equivalent of almost 7 billion drams in foreign currency. Some 9.2 billion drams were lent to transport sector and the equivalent of 30.6 billion drams in foreign currency.  -0-

spot_img

POPULAR

AMX Reaffirms Compliance with International ISO Standards

The Armenia Stock Exchange and Central Depository (AMX) have successfully completed their compliance certification with ISO 27001:2022 for Information Security Management and ISO 9001:2015 for Quality Management Systems.

Euro falls by 0.62 points to 450.23 drams

The average market exchange rate of the US dollar against the Armenian dram as of June 27, 2025, decreased by 0.59 points compared to June 26 and amounted to 384.32 drams.

Ratio of loans to deposits in commercial banks of Armenia has improved – WB review

In April 2025, deposits and loans of commercial banks of Armenia increased by 1.5% y/y and 0.8% y/y, respectively, slightly improving the ratio of loans to deposits compared to the figures for the previous year.

Armenia to receive EUR 26 million loan from KfW bank for renewable energy development

Armenia will receive a loan and a grant from the German KfW bank for the implementation of the "Renewable Energy and Energy Efficiency Development" program.

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

LATEST NEWS

spot_imgspot_imgspot_img