Even slight movement forward by Armenian banks amid current economic difficulties to be considered as progress – Chzmachyan

YEREVAN, March 20. /ARKA/. Even a slight movement forward by Armenian banks this year amid current economic difficulties will be considered as progress, Samvel Chzmachyan, chairman of the Union of Banks of Armenia, said in an interview with ARKA News Agency.

«Armenia’s banking sector faced dramatic decline in 2014 because of adverse economic and financial developments in the country in October-December,» he said.

Chzmachyan said that things affected also banks, since repayment of loans deteriorated. Besides, the banks had to resist the challenges emerged because of sharp fluctuations at forex market.

«As a result, the banks sustained heavy losses, and some of them ended that year in losses,» he said.
He also said that a complicated geopolitical situation in the world has stricken hard at the country’s economy as well.

«International sanctions against Russia have adverse impacts on Armenia, since Armenia has close economic ties with Russia,» he said.

Chzmachyan stressed that mitigation of the sanctions in 2015 will stabilize the situation in Russia and improve things in Armenia.

According to the Central Bank of Armenia, Armenian banks’ net profits totaled AMD 27.1 billion in 2014 against AMD 46.3 billion in 2013 – a 41% decline.

Besides, the banks’ capitalization, profitability and liquidity indicators fell as well. ($1 – AMD 478.36). –0–

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