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Russlavbank accuses Armenia's CB of protectionism and restriction of
competition on the market of international money transfers
ARMINFO
Thursday, December 27, 18:56
Russlavbank qualifies the Armenian Central Bank's decision to stop
the activities of the CONTACT international money transfers and
payments system in the country as a protectionist measure aimed at
restricting competition on the local market of international money
transfers and believes that this will result in growing costs for
people wishing to transfer money to Armenia.
In its press statement the Russian bank notes that this may worsen
Armenia's investment appeal and may reduce transparency of business in
the country. The bank points out that in the early 2000s CONTACT was
among the first to lay the foundations of a civilized money transfer
market in the CIS, in general, and in Armenia, in particular. Being
the system's operator in Armenia, Russlavbank has ver since complied
with all the requirements of the local Government and Central Bank and
has received no single complaint from either regulators or partners.
Russlavbank regrets the CB's decision and refuses to accept its
motives, more specifically, the fact that the operator has violated a
number of points of its contracts with its partner Armenian banks and
has failed to ensure their access to its system.
Since 2008 the CB has stopped the activities of six international
money transfer systems: on Aug 22 2008 Western Union, on July 11 2011
Lider, on Sept 6 2012 Migom, on Oct 9 2012 Zolotaya Korona and on Dec
26 2012 BLIZKO and CONTACT.
According to financial experts, the CB's key motive was that it could
not accept the operators' requirement that their systems should not
cover the partner banks' branches in Nagorno-Karabakh.
Analyst of AmRating Karina Melikyan told ArmInfo that this requirement
was not discussed by the parties when they were signing their
contracts and was set by the systems later following the Azeri
authorities' groundless demarches and anti-Armenian ultimatums "either
we or they."
competition on the market of international money transfers
ARMINFO
Thursday, December 27, 18:56
Russlavbank qualifies the Armenian Central Bank's decision to stop
the activities of the CONTACT international money transfers and
payments system in the country as a protectionist measure aimed at
restricting competition on the local market of international money
transfers and believes that this will result in growing costs for
people wishing to transfer money to Armenia.
In its press statement the Russian bank notes that this may worsen
Armenia's investment appeal and may reduce transparency of business in
the country. The bank points out that in the early 2000s CONTACT was
among the first to lay the foundations of a civilized money transfer
market in the CIS, in general, and in Armenia, in particular. Being
the system's operator in Armenia, Russlavbank has ver since complied
with all the requirements of the local Government and Central Bank and
has received no single complaint from either regulators or partners.
Russlavbank regrets the CB's decision and refuses to accept its
motives, more specifically, the fact that the operator has violated a
number of points of its contracts with its partner Armenian banks and
has failed to ensure their access to its system.
Since 2008 the CB has stopped the activities of six international
money transfer systems: on Aug 22 2008 Western Union, on July 11 2011
Lider, on Sept 6 2012 Migom, on Oct 9 2012 Zolotaya Korona and on Dec
26 2012 BLIZKO and CONTACT.
According to financial experts, the CB's key motive was that it could
not accept the operators' requirement that their systems should not
cover the partner banks' branches in Nagorno-Karabakh.
Analyst of AmRating Karina Melikyan told ArmInfo that this requirement
was not discussed by the parties when they were signing their
contracts and was set by the systems later following the Azeri
authorities' groundless demarches and anti-Armenian ultimatums "either
we or they."