YEREVAN, May 12. /ARКА/. The Central Bank of Armenia has initiated a program to support small and medium-sized businesses, under which interest rates on loans for companies with good credit and tax histories may be reduced by 1-1.5%, stated Central Bank Chairman Martin Galstyan.
“This is the first program, as far as I remember, with which we are trying to support and stimulate successful companies. Typically, the state and the financial system help those with problems. This time, we have significantly changed our approach,” he said at the conference “SME Sector: Impact and Development Challenges,” taking place in Yerevan on Tuesday.Galstyan noted that the Armenian authorities consider it important to support companies that demonstrate sustainable results, operate conscientiously, and have no problems with the tax and banking systems.
According to him, reducing the risk level will allow banks to reduce the cost of lending to such borrowers. “Our partners in the banking sector have responded to our call and request,” the regulator’s head stated.
He noted that, as a result, banks have already begun announcing plans to reduce interest rates for this category of SMEs by 1-1.5% on both new and existing loans.
“I think that in this way, we will give new impetus to the development programs of our successful companies,” Galstyan stated.
