Wed, 23 July
36.1 C
Yerevan
USD: 383.74 RUB: 4.93 EUR: 450.05 GEL: 141.25 GBP: 521.81

UBA chairman explains why loan interest rates haven’t dropped despite refinancing rate cuts

YEREVAN, February 25. /ARKA/. Daniel Azatyan, Chairman of the Union of Banks of Armenia (UBA), was asked why interest rates on loans have not decreased after the Central Bank reduced the refinancing rate.

“The refinancing rate began to rise in 2021, from 4.75%, reaching 11%. However, interest rates on loans and deposits did not increase by the same amount. Therefore, we can say that the correlation is not very strong. There is a connection, but it is linear,” said Azatyan.

He further explained that if investments in securities, rather than deposits and loans, dominate the real sector of the Armenian economy, the impact of this change will be much more significant.

“Interest rates on loans and deposits depend not only on the Central Bank’s refinancing rate but, to a greater extent, on supply and demand, as well as decisions made by individuals. I hope that interest rates on loans with floating rates will decrease in the coming months,” said Azatyan.

On February 4, the Board of the Central Bank reduced the refinancing rate by 0.25 percentage points, bringing it to 6.75%.

This marked the 14th consecutive reduction in the refinancing rate since June 2023. -0-        

spot_img

POPULAR

Euro falls by 2.8 points against Armenian dram, meanwhile, US dollar and ruble decline slightly

As of July 16, 2025, the average market exchange rate of the U.S. dollar against the Armenian dram fell by 0.16 points compared to July 15, amounting to 383.96 drams.

Armenia’s economy to stabilize on 5.5% growth trajectory in 2025 – EDB forecast

According to EDB forecasts, Armenia's economy will stabilize on a 5.5% growth trajectory with domestic demand remaining the main driver of development.

A scheme for stealing funds through fake investment platforms  exposed in Yerevan

A criminal group operating in one of the capital's business centers and stealing citizens' money through Internet calls has been exposed in Armenia, the Investigative Committee of Armenia reports.

Armenian Market: Acceleration of Economic Activity is Positive for the Market

In the period from June 16 to June 30, 2025, the Armenian stock market demonstrated mixed dynamics.

Viva Armenia CJSC bonds listed on Armenia Stock Exchange

The Armenia Stock Exchange (AMX) is pleased to welcome another major company to the capital market. Viva Armenia CJSC’s USD-denominated bonds will be listed on the Armenia Stock Exchange starting from 15 July.

LATEST NEWS

spot_imgspot_imgspot_img