YEREVAN, May 18. / ARKA /. The amount of loans provided by Armenian banks in the national currency, the dram, decreased in April following Central Bank’s decision to cut its refinancing rate, according to the data of the regulator.
Thus, interest rates on loans in drams repayable in less than 12 months fell by 1.17 percentage points in April as opposed to March to 17.94%, while interest rates on loans repayable in more than a year fell by 0.59 percentage points to 17.63%. At the same time, interest rates on loans in foreign currency repayable in less than 12 months increased by 1.45 percentage points to 9.41%, while interest rates on loans repayable in more than a year fell by 0.36% p.p. to 10.58%.
In April interest rates on deposits in drams also fell. In particular, deposits with less than 12 months term decreased by 0.68 percentage points to 10.77%, while interest rates on deposits with more than one year term fell by 0.44 percentage points to 13.73%.
Interest rates on deposits in foreign currency with less than 12 months term decreased by 0.63 percentage points to 5.27%, while interest rates on deposits with more than a year term increased by 0.5 percentage points to 7.7%.
As a result of lower rates on loans in drams and deposits the spread between the interest rates has also narrowed.
It should be noted that the Central Bank has cut its refinancing rate three times since the beginning of the year. In February it was lowered from 8.75% to 8.5%, in March to 8.25% and to 7.75% on May 17.-0-
