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"BANKS BELONG TO OLIGARCHS"
http://www.a1plus.am/en/economy/2012/01/16/bagrat-asatryan
The role of banks is negligible in Armenia. They are developing in
isolation and in a self-sufficient way, according to ex-chairman of
the Central Bank Bagrat Asatryan.
He disagrees with the opinion that banks are making super profits.
"Credit investments in Armenia make 30% of GDP and the role of the
Central Bank is insignificant in the economy," said Asatryan.
"The 8-percent refinancing rate is too high. The Central Bank is
doing what it should do but it is not enough for economic prosperity,"
said the CB ex-chairman.
There are many factors which, according to Mr. ASatryan, impede bank
activities and force them to take inadequate decisions.
"Let's slightly improve our courts and the interest rate will drop
immediately. The excessive shade and the imperfect economic system
affect the CB activity," he said.
"Banks are owned by the oligarchs. Under these conditions, their
activity is reasonable, and all the ills of the economy stem from
the political system," said Bagrat Asatryan.
"We have a vicious political system; everyone pursues their narrow
interests and banks operate in risky atmosphere," he continued.
"The country's banking system could be even worse. Political will and
radical reforms are required to improve the situation and decrease
the interest rate," he concluded.
http://www.a1plus.am/en/economy/2012/01/16/bagrat-asatryan
The role of banks is negligible in Armenia. They are developing in
isolation and in a self-sufficient way, according to ex-chairman of
the Central Bank Bagrat Asatryan.
He disagrees with the opinion that banks are making super profits.
"Credit investments in Armenia make 30% of GDP and the role of the
Central Bank is insignificant in the economy," said Asatryan.
"The 8-percent refinancing rate is too high. The Central Bank is
doing what it should do but it is not enough for economic prosperity,"
said the CB ex-chairman.
There are many factors which, according to Mr. ASatryan, impede bank
activities and force them to take inadequate decisions.
"Let's slightly improve our courts and the interest rate will drop
immediately. The excessive shade and the imperfect economic system
affect the CB activity," he said.
"Banks are owned by the oligarchs. Under these conditions, their
activity is reasonable, and all the ills of the economy stem from
the political system," said Bagrat Asatryan.
"We have a vicious political system; everyone pursues their narrow
interests and banks operate in risky atmosphere," he continued.
"The country's banking system could be even worse. Political will and
radical reforms are required to improve the situation and decrease
the interest rate," he concluded.