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2005 PERIOD OF CHALLENGES FOR ARMENIA'S BANKING SYSTEM: ARTUR JAVADYAN
YEREVAN, June 3. /ARKA/. The year 2005 will be a period of challenges,
as well as a year of introduction of new services and instruments, for
Armenia's banking system, Vice-Chairman of the Central Bank of Armenia
(CBA) Artur Javadyan stated at an annual meeting of the Armeconombank.
He reported that banks forecast that their development in 2005 will
be marked by macroeconomic stability, low inflation, exchange rate
devaluation, high economic growth and improvement of the mortgage
sector. Javadyan stressed that the banks' fund attraction policy
is chiefly based on the attraction of fixed deposits from resident
individuals and legal entities. The funds attracted by banks will
mostly be directed to industry, particularly to the food industry,
construction, trade, and consumer crediting - to mortgage. Javadyan
pointed out that stepped up competition in fund attraction last
year caused a rise in interest rates. "Competition will be stepped
up in 2005-2007 as well, and the same can be expected in crediting,
especially in the crediting of small and middle-sized businesses and
in consumer crediting," he said. According to Javadyan, in 2005 banks
will be actively expanding their activities in Armenia's regions,
and the establishment of branches will be an important factor in
competition. P.T. -0--
YEREVAN, June 3. /ARKA/. The year 2005 will be a period of challenges,
as well as a year of introduction of new services and instruments, for
Armenia's banking system, Vice-Chairman of the Central Bank of Armenia
(CBA) Artur Javadyan stated at an annual meeting of the Armeconombank.
He reported that banks forecast that their development in 2005 will
be marked by macroeconomic stability, low inflation, exchange rate
devaluation, high economic growth and improvement of the mortgage
sector. Javadyan stressed that the banks' fund attraction policy
is chiefly based on the attraction of fixed deposits from resident
individuals and legal entities. The funds attracted by banks will
mostly be directed to industry, particularly to the food industry,
construction, trade, and consumer crediting - to mortgage. Javadyan
pointed out that stepped up competition in fund attraction last
year caused a rise in interest rates. "Competition will be stepped
up in 2005-2007 as well, and the same can be expected in crediting,
especially in the crediting of small and middle-sized businesses and
in consumer crediting," he said. According to Javadyan, in 2005 banks
will be actively expanding their activities in Armenia's regions,
and the establishment of branches will be an important factor in
competition. P.T. -0--