Armenian expert: change in interest and refinancing rates ineffective
25.07.2009,
03:16
Ameriabank Development Director Tigran Jrbashyan finds the change in interest and refinancing rates ineffective.
YEREVAN, July 24. /ARKA/. Ameriabank Development Director Tigran Jrbashyan finds the change in interest and refinancing rates ineffective.
“Change of interests and the policy of lower refinancing are not so effective amid the recession, since world experience show that such a policy transforms not clear on market”, Jrbashyan said at a the press conference held Wednesday.
He pointed out the Government and the Central Bank’s programs as more effective means to resist the crisis.
The expert is convinced that refinancing and cash support for banks have more favorable impact on interests than that policy.
Jrbashyan the government’s participation in budget guarantees can produce higher effect.
On March 3, 2009, the Central Bank of Armenia announced its intention to lower refinancing rate.
On July 7, the Central Bank downed refinancing rate by 0.5 percentage points to annual 5.5%.
That was the fifth decrease since March 3, when the bank announced the policy of floating exchange rates and drove refinancing rate one percentage point up to 7.75%.
Later, on April 7, the rate was driven down to annual 7.5% and on May 12 to 7.25%.
On May 22, the rate was lowered 1.0 point to 6.25% and on June 9, it was downed again by 0.25 points to annual 6%.
“I don’t think Armenia will be able to ensure zero rate, since it implies certain problems in struggle against inflation and inflation forecasts”, the representative of the bank said.
The Ameriabank CJSC (former Armimpexbank) was founded in July 1992 using the facilities of the Armenian branch of the USSR Vnesheconombank (Foreign Economy Bank). On September 8, 1992, the bank received a banking license from the CBA.
Last August, TDA Holdings limited, affiliated with Troika Dialogue, Russia’s leading investment company, purchased the bank’s shares. This May the bank was renamed Ameriabank.-0--
“Change of interests and the policy of lower refinancing are not so effective amid the recession, since world experience show that such a policy transforms not clear on market”, Jrbashyan said at a the press conference held Wednesday.
He pointed out the Government and the Central Bank’s programs as more effective means to resist the crisis.
The expert is convinced that refinancing and cash support for banks have more favorable impact on interests than that policy.
Jrbashyan the government’s participation in budget guarantees can produce higher effect.
On March 3, 2009, the Central Bank of Armenia announced its intention to lower refinancing rate.
On July 7, the Central Bank downed refinancing rate by 0.5 percentage points to annual 5.5%.
That was the fifth decrease since March 3, when the bank announced the policy of floating exchange rates and drove refinancing rate one percentage point up to 7.75%.
Later, on April 7, the rate was driven down to annual 7.5% and on May 12 to 7.25%.
On May 22, the rate was lowered 1.0 point to 6.25% and on June 9, it was downed again by 0.25 points to annual 6%.
“I don’t think Armenia will be able to ensure zero rate, since it implies certain problems in struggle against inflation and inflation forecasts”, the representative of the bank said.
The Ameriabank CJSC (former Armimpexbank) was founded in July 1992 using the facilities of the Armenian branch of the USSR Vnesheconombank (Foreign Economy Bank). On September 8, 1992, the bank received a banking license from the CBA.
Last August, TDA Holdings limited, affiliated with Troika Dialogue, Russia’s leading investment company, purchased the bank’s shares. This May the bank was renamed Ameriabank.-0--
