YEREVAN, September 16. /ARKA/. Deposit interest rates in Armenia are showing a downward trend, and credit rates are still unchanged, Central Bank Chairman Martin Galstyan told reporters on Tuesday.
The Board of the Central Bank of Armenia, at a meeting on Tuesday, decided to reduce the refinancing rate by 0.25 percentage points and set it at 4.25%. The rate of the Lombard repo provided by the Central Bank was 5.75%, and the rate on funds attracted by the Central Bank from other banks was 2.75%.
“Some commercial banks have already noted a certain decrease in deposit rates and new deposits are attracted at a definitely lower rate. As for loans, it is still difficult to draw conclusions, since uncertainty remains in the economy. In terms of containing risks, banks may pursue different policies,” Galstyan said.
According to him, it is difficult to expect that the reduction in the refinancing rate in the context of the existing uncertainties will immediately affect the lending rates, but in the instruments of financial markets, it already impacts the yield of government bonds.
He noted that it is still difficult to talk about lowering rates, since this is a universal instrument, but amid the crisis, Armenian banks provided credit holidays to many borrowers, agreeing to work without income and returns, which also affects the banks themselves.
“Today, the main instrument that restrains credit rates is the financial standing of businesses and the continuing uncertainty. I think that at the moment a business in Armenia, which has a good position, will be able to get loans at low rates,” Galstyan said. -0-
