Armenian central bank is likely to raise refinancing rate, daily says

YEREVAN, January 18. /ARKA/. Armenia’s Central Bank is very likely to raise soon the key refinancing rate, the local daily ‘Haykakan Zhamanak’ (Armenian Time) says in its today’s issue, adding that if this does happen the move will gradually push up the interest rates on loans provided to businesses and the people. The daily’s forecast is based on a hint which it saw in the latest statement by the regulator.

“By making loans more expensive, the Central Bank will try to curb inflation. In other words, more expensive loans will lead to a slowdown in economic activity, which, in turn, will lead to a decrease in the purchasing power of the population,” the daily says.

It says according to the classical economic rules, if the population’s solvency falls, the inflation rate also decreases. The whole problem is that classical economic rules do not always work in Armenia, according to the pro-opposition newspaper. In particular, in a monopolized economy, prices may go up not because of market factors, but because of ‘the whims of businesses.” In such circumstances, the change of the refinancing rate may lead to serious negative consequences, it says.

On December 26, Armenia’s Central Bank decided to keep its key refinancing rate unchanged at 6 percent. It suspended monetary policy easing in March last year and in 2016 alone it lowered the key refinancing rate 8 times.

Consumer prices in December 2017 increased by 2.6% year-on-year with food products (including alcoholic beverages and tobacco products) rising by 5.3% and non-food products by 1.7%, while services decreased by 0.5%. The government-projected inflation for 2017 is 4% (± 1.5%). -0-

spot_img

POPULAR

Armenia to prepare action plan to implement MONEYVAL recommendations — Union of Banks

Armenia's interdepartmental commission will soon present for discussion an action plan to implement MONEYVAL recommendations, said Daniel Azatyan, Chairman of the Union of Banks of Armenia, in response to a question from ARKA news agency.

It is now possible to register in Unibank’s mobile application through imID as well

Unibank continues to expand its digital service capabilities by offering customers another convenient option for registering in the UNIMobile application.

Armenian banks’ loan portfolio in the first half of the year amounted to 8.8 trillion drams, up 11.5% – Union of Banks

The loan portfolio of Armenian banks in the first half of 2026 amounted to 8.8 trillion drams, up 11.5%, reported Daniel Azatyan, head of the Union of Banks of the Republic.

Head of the Union of Banks of Armenia did not rule out consolidation of the Armenian banking market

Daniel Azatyan, Chairman of the Union of Banks of Armenia, believes the current number of commercial banks in the country is optimal, but theoretically allows for market consolidation.

Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (July 27–31)

Armenia's financial agenda last week was determined by banking sector data, rating decisions, inflation and public debt forecasts, exchange rate dynamics, personnel changes at Byblos Bank Armenia, and expert assessments of the possible impact of restrictions on goods supplies to Russia.

LATEST NEWS

spot_imgspot_imgspot_img