No extraordinary outflow of capital reported from Armenian banks during political crisis

YEREVAN, May 22. /ARKA/. No extraordinary outflow of capital was reported from Armenian banks during the political crisis in late April and early May, however, a number of depositors chose to terminate their contracts with local banks, the chairman of the Central Bank of Armenia Artur Javadyan said today when speaking at meeting of a parliamentary committee on financial and budgetary issues.

“There was no purposeful and large-scale outflow of capital from the country. But some depositors rushed to terminate their contracts, however, from May 10 the depositors began to bring their money back to the banks,” he said.

According to him, if the number of depositors of a local bank with terminated contracts numbered on average 10 contracts per day, in late April and early May their number surged to 300, but then this number declined to about three per day.

Javadyan noted also that due to the premature termination of deposit agreements, depositors lost not only the interests on their deposits, but had to bring their money back at lower interest rates.

According to Javadyan, political developments in late April did not affect the monetary policy of the Central Bank; however, the regulator conducted preventive macro-prudential measures ensuring financial stability.

According to the Central Bank, the volume of banking deposits at the end of March stood at 2.643.2 trillion drams, an increase of 1.38% from the previous month. ($ 1- 483.03 dram). -0-

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