Head of Financial Stability Department of the Central Bank of Armenia (CBA) Vahe Vardanyan said that the growth in the CBA refinancing rate will have an impact on deposit interest rates.
“After ‘frozen’ 2009, Armenia’s banks will have to actively develop crediting policy to restore profitability, and from this point of view the increase in the CBA refinancing rate will not affect credit interest rates,” Vardanyan told a press conference.
According to the expert, the increase in refinancing rate will influence the difference between credit and deposit interest rates, as a result of which the interest rates for AMD and foreign currency deposits will increase and drop respectively, as the banking system lacks demand for foreign currency.
“Currently, there are banks, where the difference in interest rates for AMD and foreign currency deposits totals 4-5%, what, according to the CBA, is a positive phenomenon,” Vardanyan concluded.
