YEREVAN, January 16. / ARKA /. Armenian banks should have shown some support to their borrowers who faced serious problems in repaying their dollar-denominated loans after Armenia’s national currency, the dram, began to lose its value dramatically against the greenback late last year, Babken Pipoyan, head of a non-government organization called Informed and Protected Consumer, told a news conference today.
Pipoyan said the banks could have been accused of the violation of consumer rights if they made their customers borrow only in foreign currency.
Pipoyan argued that the banks could have lowered interest rates on loans or provided partial compensation. According to him, the government could have also compensated for the losses of borrowers from the most vulnerable social groups.
The Armenian dram began losing its value on November 24. On December 17 its official exchange rate fell to record low over the last 10 years to 527.20 drams per one USD. But after the Central Bank and the government took action to stabilize the tension the national currency strengthened against USD to 456.17 drams. Today the US dollar has been trading at 478. 45 drams. -0-
