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.<\/p>\n\n\n\n
“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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
“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.<\/p>\n\n\n\n
On February 4, the Board of the Central Bank reduced the refinancing rate by 0.25 percentage points, bringing it to 6.75%.<\/p>\n\n\n\n
This marked the 14th consecutive reduction in the refinancing rate since June 2023. -0- <\/p>\n","protected":false},"excerpt":{"rendered":"
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