Armenia’s banking sector may face new problems when Armenia joins Customs Union, newspaper

YEREVAN, April 9. / ARKA /. An Armenian daily ‘Zhamanak’ (Time) says in its today’s issue that Armenia’s upcoming accession to the Customs Union of Russia, Kazakhstan and Belarus will bring about certain risks for its banking system.

The daily says if Armenia joins some agreements effective in the Russia-led trade bloc, its financial system would face a string of problems. One of these documents is an agreement on services, trade and investments, under which all member countries must harmonize their financial legislation before 2020.

However, “Zhamanak” says there is no yet a clear vision of the principles and criteria that should be used to harmonize the legislation in question and this may lead to differences.

The newspaper writes that according to the agreement, before January 1, 2020 the member countries will have to shift to the mutual recognition of licenses. This means that a license for conducting financial services of one country will be valid in another member country.

“Now the scope of requirements in member countries is different, some of which has objective reasons related to the size of the market, the complexities of services and risk tools. Harmonization of financial legislation and the subsequent mutual recognition of licenses may create difficulties,  “Zhamanak” says. -0-

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