CENTRAL BANK OF ARMENIA PRESENTS CURRENT SITUATION ON COUNTRY’S FINANCIAL MARKET TO IMF DELEGATION

YEREVAN, October 12. /ARKA/. On Monday, the board of the Central Bank of Armenia presented the current situation on the country’s financial market and in the banking system to the IMF executive directors, the press office of the Central Bank of Armenia reports.

The Central Bank Chairman Arthur Javadyan told the IMF delegation that things on Armenian financial market are stable now, and liquidity in the banking system is abundant.

The stress tests held by the central bank’s specialists showed that adequacy of banking capitals would considerably exceed the minimal required benchmark under the worst circumstances.

Javadyan said that the central bank has taken certain steps to mitigate adverse impacts of the global crisis – the bank has reconsidered refinancing rate seven times since the beginning of this year and lowered it 2.75 percentage points.

The government pumped up great amounts of cash into the banking system to enable banks to lend money.
The central bank widened the range of credit instruments by adding long-term refinancing loans to short-term loans for banks.

The central bank also intensified its participation on the secondary state securities market, promoting a wider fiscal policy.

Javadyan also said that National Mortgage Company has already started operating – it refinances banks’ mortgage loans.

The guests welcomed the central bank’s efforts saying these steps have already proven to be effective, and the high-skilled team has contributed a great deal to that.-0--