YEREVAN, January 31. / ARKA /. Armenian Ameriabank CEO, Artak Hanesyan, predicted today that local banks will continue to lower the rates on deposits and loans in 2014 as well.
Speaking to a news conference he said Ameriabank had cut the rates on deposits and loans by 0.5 percent last year on average.
“We have twice cut the rates on deposits in 2013 as the rates on loans were tending downward almost throughout the year. We expect this trend to continue in 2014 as well,” Anesyan said.
According to him, the drop in interest rates on deposits, especially in deposits in the national currency, the dram, was prompted by the falling yield on government bonds.
Accoridng to him, the rates on deposits in foreign currency, to some extent depend on the issue of Eurobonds, but largely they are more dependent on the internationally shaped LIBOR rate.
"LIBOR rate showed stability in 201. We do not expect it to grow this year either, so the current rates on deposits in foreign currency can only be adjusted with international trends” he said.
Rates on deposits in drams in commercial banks in December 2013 varied between 10.4% - 12.6% depending on their terms. The rates on deposits in foreign currency varied between 5.52 % and 7.53 %. Rates on loans in drams varied between 15% and 18.28% and rates on loans in foreign currency varied between 10.25% and 11.85 %.
Ameriabank is a universal bank providing investment, corporate and retail banking services. M.M.-0-