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ARMENIA'S FINANCIAL SYSTEM ABLE TO RESIST SERIOUS EXTERNAL CHALLENGES- CB HEAD
YEREVAN, November 22. / ARKA /. "The Dram is not only a means of
payment; it is a key symbol of our independence and statehood, the
pride of every citizen. Appreciating the true merit of it indeed
requires more time. However, building a confidence in the Dram and
helping it become established is already a history,' said today the
chairman of Armenia's Central Bank Arthur Javadyan at a ceremony
dedicated to the Bank Employee's Day and the 20th anniversary of
the introduction of Armenia's national currency, attended also by
President Serzh Sargsyan.
.
According to him, even in the most vulnerable times of global financial
crisis the domestic financial system posted increased volumes of
credits and deposit accounts, which contributed to the revival of
the economy.
'While many financial institutions in the world went bankrupt and
only some could withstand the hardships thanks to enormous financial
support from their governments and at the cost of significant increases
in public debt, no financial institution in Armenia suffered solvency
problems or was in need for governmental assistance," he said.
"A report published by the International Monetary Fund and the
World Bank also points to the success with which Armenia maintains
its financial system stability. The report contains these renowned
institutions' assessment of the country's financial sector, which
was conducted last year. Not that these were years to merely endure
the challenges but to wade into them with true vigor and dignity, in
order to continue developing more assertively and purposefully. Our
achievements in these years are obvious: the office of financial system
mediator started functioning in 2009, the Central Bank spent more
efforts and at a larger scale in increasing public confidence toward
the financial sector, consumer protection and financial education,
the threshold of insured deposits of individuals has doubled up to
AMD 4 million for dram-denominated deposits and up to AMD 2 million
for foreign currency deposits."
"In 2011 the All-Armenian Bank started its operations with the goal
to make financial investments in areas strategically important for
Armenia, and it already has some loan investments on track, the Central
Bank continued supporting a variety of social and institutional reforms
(mortgage, consumer, agricultural projects; the compulsory motor third
party liability insurance; the pension reform plan, among others)."
"In the course of the last 5 years we have been thrilled to see the
financial intermediation grown two and a half times in the economy,
the average loan and deposit volumes increased to about 27 percent
each, the weighted average interest rates of loans fallen by 3-4
percentage points, as well as an increased access to financial
services, an increasingly stronger corporate governance culture at
banks and an elevated level of financial literacy among households.
For comparison, as of end of 2008 the amount of the banking system
credit was AMD 615 billion, with assets amounting to AMD 1.0 trillion,
these indicators today are, respectively, AMD 1.6 trillion and AMD 2.7
trillion. This is the outcome of our unswerving work year after year.
We are full of pride for our currency and for the
path it has gone so far." M.M.-0- - See more at:
http://arka.am/en/news/economy/armenia_s_financial_system_able_to_resist_serious_ external_challenges_cb_head/#sthash.m0h7gL5k.dpuf
YEREVAN, November 22. / ARKA /. "The Dram is not only a means of
payment; it is a key symbol of our independence and statehood, the
pride of every citizen. Appreciating the true merit of it indeed
requires more time. However, building a confidence in the Dram and
helping it become established is already a history,' said today the
chairman of Armenia's Central Bank Arthur Javadyan at a ceremony
dedicated to the Bank Employee's Day and the 20th anniversary of
the introduction of Armenia's national currency, attended also by
President Serzh Sargsyan.
.
According to him, even in the most vulnerable times of global financial
crisis the domestic financial system posted increased volumes of
credits and deposit accounts, which contributed to the revival of
the economy.
'While many financial institutions in the world went bankrupt and
only some could withstand the hardships thanks to enormous financial
support from their governments and at the cost of significant increases
in public debt, no financial institution in Armenia suffered solvency
problems or was in need for governmental assistance," he said.
"A report published by the International Monetary Fund and the
World Bank also points to the success with which Armenia maintains
its financial system stability. The report contains these renowned
institutions' assessment of the country's financial sector, which
was conducted last year. Not that these were years to merely endure
the challenges but to wade into them with true vigor and dignity, in
order to continue developing more assertively and purposefully. Our
achievements in these years are obvious: the office of financial system
mediator started functioning in 2009, the Central Bank spent more
efforts and at a larger scale in increasing public confidence toward
the financial sector, consumer protection and financial education,
the threshold of insured deposits of individuals has doubled up to
AMD 4 million for dram-denominated deposits and up to AMD 2 million
for foreign currency deposits."
"In 2011 the All-Armenian Bank started its operations with the goal
to make financial investments in areas strategically important for
Armenia, and it already has some loan investments on track, the Central
Bank continued supporting a variety of social and institutional reforms
(mortgage, consumer, agricultural projects; the compulsory motor third
party liability insurance; the pension reform plan, among others)."
"In the course of the last 5 years we have been thrilled to see the
financial intermediation grown two and a half times in the economy,
the average loan and deposit volumes increased to about 27 percent
each, the weighted average interest rates of loans fallen by 3-4
percentage points, as well as an increased access to financial
services, an increasingly stronger corporate governance culture at
banks and an elevated level of financial literacy among households.
For comparison, as of end of 2008 the amount of the banking system
credit was AMD 615 billion, with assets amounting to AMD 1.0 trillion,
these indicators today are, respectively, AMD 1.6 trillion and AMD 2.7
trillion. This is the outcome of our unswerving work year after year.
We are full of pride for our currency and for the
path it has gone so far." M.M.-0- - See more at:
http://arka.am/en/news/economy/armenia_s_financial_system_able_to_resist_serious_ external_challenges_cb_head/#sthash.m0h7gL5k.dpuf