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WESTERN UNION'S ACTIVITY IN ARMENIA BANNED AS WESTERN UNION STOPS MONEY TRANSFERS TO NAGORNO- KARABAKH
arminfo
2008-08-25 20:26:00
ArmInfo. The ban on Armenian commercial banks' participation in
the Western Union international payment system is conditioned by
the fact that this system has ceased implementing money transfers
to Nagorno-Karabakh, this running counter to the agreements signed
between the banks and the payment system, one of the Armenian bankers,
who wished to remain anonymous, commented the Aug 22 decision of the
Central Bank of Armenia for ArmInfo correspondent.
To recall, by the Aug 22 decision, the CBA Council forbade the
country's commercial banks to participate in the Western Union
international payment system and in this connection obliged the banks
to cancel their agreements with this system.
According to ArmInfo analysts, Armenian commercial banks will not
suffer much from Western Union's withdrawal from the market of money
transfers, as they work under 16 more systems, most actively - under
UNIStream and Anelik.
The other systems are Contact, Migom, Money Gram, InterExpress,
Lider, PrivateMoney, UTS, Blizko, etc. ArmInfo analysts think that
the temporary reduction of the total volume of transfers because
of Western Union's withdrawal will not exceed 10% as the share of
transfers under this system in the total volume of transfers ranges
between 10% and 11%. The other systems with similar geography of
presence in various countries are most likely to benefit, all the more
so most of Armenian banks are simultaneously working with several
money transfer systems. Moreover, the case with Western Union will
consolidate the Armenian banks' tactics not to focus on one or two
money transfer systems, due to which they minimize their risks.
As Russian sources reported earlier, on July 30 the National Bank of
Azebaijan instructed the Azeri commercial banks to stop transferring
money via Western Union and Money Gram because the latter continued
carrying out transactions in Nagorno-Karabakh despite the NBA's
demands to stop such activities.
To note, Western Union started cooperation with Armenian banks in
1995. In 1996 it was officially registered in Armenia. Most of the
commercial banks of Armenia are members of this system: Ameriabank,
Areximbank, Armeconombank, Bank VTB Armenia, Armbusinessbank,
INECOBANK, Artsakhbank, Unibank, Converse Bank, ACBA-Credit Agricole
Bank.
The Central Bank of Armenia reports that in Jan-Mar 2008 Western
Union was the third on the money transfer market: a total of 8.3bln
AMD was transferred during the period with 88.7% (7.4bln AMD) into
Armenia. The leaders of Armenia's money transfer market are UNIStream
(39.3bln AMD in Jan-Mar 2008) and Anelik (8.7bln AMD). A total of 79bln
AMD was transferred via 17 international payment systems operating
in Armenia in Jan-Mar 2008.
arminfo
2008-08-25 20:26:00
ArmInfo. The ban on Armenian commercial banks' participation in
the Western Union international payment system is conditioned by
the fact that this system has ceased implementing money transfers
to Nagorno-Karabakh, this running counter to the agreements signed
between the banks and the payment system, one of the Armenian bankers,
who wished to remain anonymous, commented the Aug 22 decision of the
Central Bank of Armenia for ArmInfo correspondent.
To recall, by the Aug 22 decision, the CBA Council forbade the
country's commercial banks to participate in the Western Union
international payment system and in this connection obliged the banks
to cancel their agreements with this system.
According to ArmInfo analysts, Armenian commercial banks will not
suffer much from Western Union's withdrawal from the market of money
transfers, as they work under 16 more systems, most actively - under
UNIStream and Anelik.
The other systems are Contact, Migom, Money Gram, InterExpress,
Lider, PrivateMoney, UTS, Blizko, etc. ArmInfo analysts think that
the temporary reduction of the total volume of transfers because
of Western Union's withdrawal will not exceed 10% as the share of
transfers under this system in the total volume of transfers ranges
between 10% and 11%. The other systems with similar geography of
presence in various countries are most likely to benefit, all the more
so most of Armenian banks are simultaneously working with several
money transfer systems. Moreover, the case with Western Union will
consolidate the Armenian banks' tactics not to focus on one or two
money transfer systems, due to which they minimize their risks.
As Russian sources reported earlier, on July 30 the National Bank of
Azebaijan instructed the Azeri commercial banks to stop transferring
money via Western Union and Money Gram because the latter continued
carrying out transactions in Nagorno-Karabakh despite the NBA's
demands to stop such activities.
To note, Western Union started cooperation with Armenian banks in
1995. In 1996 it was officially registered in Armenia. Most of the
commercial banks of Armenia are members of this system: Ameriabank,
Areximbank, Armeconombank, Bank VTB Armenia, Armbusinessbank,
INECOBANK, Artsakhbank, Unibank, Converse Bank, ACBA-Credit Agricole
Bank.
The Central Bank of Armenia reports that in Jan-Mar 2008 Western
Union was the third on the money transfer market: a total of 8.3bln
AMD was transferred during the period with 88.7% (7.4bln AMD) into
Armenia. The leaders of Armenia's money transfer market are UNIStream
(39.3bln AMD in Jan-Mar 2008) and Anelik (8.7bln AMD). A total of 79bln
AMD was transferred via 17 international payment systems operating
in Armenia in Jan-Mar 2008.