Araratbank board chairman: Armenian banking system is stable despite enormous stress

YEREVAN, September 25. /ARKA/. Macroeconomic analysis shows that the impact of the coronavirus pandemic on Armenia’s banking sector was not as strong as expected, and the system itself turned out to be stable, Araratbank Board Chairman Grigor Hovhannisyan told reporters yesterday.

“Despite the enormous stress, the Armenian banking system turned out to be stable, but the second wave of the coronavirus is beginning in Europe, and given that the Armenian system  is integrated into global trends, much will depend on subsequent developments, but the situation is stable so far,” he said.

He also noted that the reduction in the refinancing rate by the Central Bank also had a positive effect on banks during the crisis allowing to ease the pressure.

The Executive Director of the Union of Banks of Armenia Seyran Sargsyan noted that the banking system of Armenia remains stable.

“Part of the population has problems with the system due to the financial burden,  but on the other hand, the banking system is trusted by the majority of the population, as evidenced by the fact that most of the population continues to keep savings in banks ”, Sargsyan said.

He also noted that the stability and liquidity of the banking system forces non-residents to keep their financial resources in Armenia.

As of September 10, the Armenian government  released 163.4 billion drams (almost $335 million) to help companies and citizens overcome the consequences of the coronavirus crisis.

Overall, the government approved 24 programs. Some were designed to support agriculture, tourism, SMEs, microbusiness, IT and other industries, others – to show financial assistance to various groups of the population. Some of the programs have already been completed, some are still in the process. Meantime,  the government is considering  new opportunities for showing assistance for the citizens. -0-

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