YEREVAN, October 30. / ARKA /. The vice-president of the Union of Banks of Armenia Seyran Sargsyan ruled out today sharp changes in interest rates on deposits in Armenian dram. Speaking at a news conference Seyran Sarkisian said contrary to interest rates on deposits in drams that are on the rise the interest rates on deposits in foreign currency continue to decline.
According to Central Bank figures, the average interest rate on deposits in Armenia’s national currency in September was 14.06%, an increase of 1.8% over the previous month.
Sarkisian said there was no link between the growth of rates and the banks’ moves to replenish their capital or reserves ‘because the banks’ liquidity is high.’
According to him, the rise in interest rates on dram deposits is prompted by the desire of banks to attract short-term funds.
According to the National Statistical Service, in late August 2015 the overall deposits at 21 Armenian commercial banks stood approximately at 1.835.6 trillion drams, having decreased by 0.8% from the previous month.
Resident deposits were by 0.8% down from the previous month standing at 1.422.1 trillion drams. Resident deposits in the national currency totaled 497.5 billion drams, a decline of 3.1% from July, while deposits in foreign currency grew by 0.4% to the equivalent of 924.6 billion drams. ($1 – 472.78 drams). -0-
