YEREVAN, September 14. /ARKA/. Chairman of Armenia’s Union of Banks Ashot Osipyan expects interest rates on deposits to decline.
“I don’t think interest rates on deposits will continue rising, I expect them to fall,” he told the journalists on Friday.
As of the interest rates on credits, Osipyan said that expectations differ depending on credit types. He also highlighted that interest rates may tumble due to the high competitiveness in the banking sector.
“We do not have a wand which can reduce all interest rates immediately. Everything is interconnected- fall of interest rates, general development of economy. Banking system is a part of economy, and we can speak of the expectations in the context of its development,” he added.
However, the interest rates on credits must meet the risks of the market.
According to the Central Bank of Armenia, an average interest rate on deposits in July was 9% instead of 9.2% in June, and an average interest rate on credits in July was 14.6% versus 14.4% in June. -0-