YEREVAN, February 17. / ARKA /. Ameriabank CEO Artak Hanesyan said today interest rates on loans in foreign currency are likely to rise slightly soon.
Speaking at a news conference he said Central Bank’s latest decisions to raise for local commercial banks the reserve requirement in foreign currency and to increase the key refinancing rate triggered a 4-5 percent rise in rates on deposits in the national currency.
According to him, Armenia’s banking sector has created favorable conditions for attracting deposits in the national currency that will in turn help reduce the level of dollarization.
“People should take advantage of this opportunity, because deposits in drams will bring higher returns,’ said Hanesyan.
According to him, this in view the banks should increase lending rates in foreign currency ‘in order to preserve at least minimum level of effective performance.’
“Therefore, we should expect soon a slight increase in interest rates on foreign currency loans,’” said Hanesyan.
In order to stabilize the forex market situation and scotch currency speculations, Armenia’s central bank raised, on December 17, the reserve requirement in foreign currency for commercial banks from 14% to 24%.
Later, on December 20, the regulator lowered the requirement down to 20%. The Lombard repo rate was twice from 8.25 to 20%. The regulator also raised twice the key refinancing rate to 9.5 percent.-0-
