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EBRD FORECASTS REDUCTION IN INTEREST RATES IN ARMENIA
ArmInfo
23.02.2010
ArmInfo.The European Bank for Reconstruction and Development (EBRD)
forecasts reduction in interest rates in Armenia in 2010, Head of
EBRD Office in Armenia told Valeriu Razlog told ArmInfo.
It is difficult to foretell how the interest rates will be formed in
the commercial banks of Armenia, he said. EBRD expects some restraint
or reduction in market rates due to fiercer competition between the
banks with due regard for high-level liquidity, he added. At the
same time, Razlog thinks that having resources to invest in the real
sector of economy, the Armenian commercial banks are currently trying
attract the best clients, and this rules out raising of interest rates.
At the same time, EBRD forecasts further raise in the rate of
refinancing. This tendency is already being observed in Central
Europe, where countries are gradually transiting from economy support
to enhanced stability efforts. Today, many CBs are showing a more
balanced approach to economy support as this policy creates an
environment fostering inflation.
To remind, Feb 16 the Central Bank of Armenia raised the rate of
refinancing by 0.50 points to 6%.
ArmInfo
23.02.2010
ArmInfo.The European Bank for Reconstruction and Development (EBRD)
forecasts reduction in interest rates in Armenia in 2010, Head of
EBRD Office in Armenia told Valeriu Razlog told ArmInfo.
It is difficult to foretell how the interest rates will be formed in
the commercial banks of Armenia, he said. EBRD expects some restraint
or reduction in market rates due to fiercer competition between the
banks with due regard for high-level liquidity, he added. At the
same time, Razlog thinks that having resources to invest in the real
sector of economy, the Armenian commercial banks are currently trying
attract the best clients, and this rules out raising of interest rates.
At the same time, EBRD forecasts further raise in the rate of
refinancing. This tendency is already being observed in Central
Europe, where countries are gradually transiting from economy support
to enhanced stability efforts. Today, many CBs are showing a more
balanced approach to economy support as this policy creates an
environment fostering inflation.
To remind, Feb 16 the Central Bank of Armenia raised the rate of
refinancing by 0.50 points to 6%.