Interest rates on Armenian banks’ loans tend to decline

YEREVAN, June 11 /ARKA/. Interest rates on Armenia-based commercial banks’ loans show a downward trend, Araratbank Board Chairman Ashot Osipyan told reporters on Tuesday. According to him, in 2018 the rates also decreased, prompted by growing competition.

“There is another positive impulse coming from the international market this year that is supposed to push interest rates down in Armenia. It is the Libor that is declining,’ said Osipyan.

He said at the beginning of the year Libor was 2.8%, while at the moment the semi-annual Libor is 2.4%.
“I think that the policy of US President Donald Trump will not allow Libor to grow in 2019,” said Osipyan.

According to the Central Bank of Armenia, the average interest rates on loans provided for a period of up to 12 months decreased by 0.3 percentage points in April 2019 to 12.26%. Armenia’s Central Bank left the refinancing rate unchanged at 5.75% on April 20. -0-

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