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Armenian banks waiting for USD revaluation to issue loans - economist
16:19 * 31.01.15
The Armenian banks are waiting for the US Dollar's revaluation to
resume their loan issuance, an economist has said, commenting on the
increased interest rates.
"The exchange rate of Euro has to go down, of course, as the trust in
that currency has decreased too against the backdrop of the economic
crisis in Armenia, the terrorist acts in France, as well as the
Central Bank of Europe's statement on releasing 1 trillion Euros, and
the monthly turnover of about 60 million Euros," Vilen Khachatryan
told Tert.am.
The economist said he expects the Dollar and Euro prices to become
equal until mid-2015.
"The Dollar is gaining value against other currencies, and there are
rumors that the US Federal Reserve System has to raise the interest
rates. But the banks around the world are against such processes," he
said, noting further that the trend would deteriorate the economic
situation in many countries.
"That is the reason that the banks in Singapore and China send, rudely
speaking, 'messages' to the US Federal Reserve System, warning them
against the move, which they say is harmful for global economy. In
2014, all the currencies except the [Japanese] Yen and several other
lost value against the Dollar," Mr Khachatryan noted.
Asked to comment on possible impacts on the apartment sale and
purchase in Armenia, the economist said he sees that the Dollar surge
caused most bank customers to borrow loans in the national currency in
order to maximum effectively manage personal resources. "If they see
that the exchange rate is going to cross 500 [Drams] threshold, they
know they should not borrow money in Dollars, because their income in
Drams will not suffice them to later pay off the interests. And that
freezes also the mortgage loan market, because people do not run the
risk of borrowing loans, as that would put them to further trouble.
But we observe a deflation trend on the market - about 10%-20%. Very
often, those [selling apartments] offer a price and then step aside,
leaving the floor open to the one who needs money. So what we see is a
long-lasting situation that obliges us to wait," he explained.
http://www.tert.am/en/news/2015/01/31/vilen-khachatryan/1575497
From: Emil Lazarian | Ararat NewsPress
16:19 * 31.01.15
The Armenian banks are waiting for the US Dollar's revaluation to
resume their loan issuance, an economist has said, commenting on the
increased interest rates.
"The exchange rate of Euro has to go down, of course, as the trust in
that currency has decreased too against the backdrop of the economic
crisis in Armenia, the terrorist acts in France, as well as the
Central Bank of Europe's statement on releasing 1 trillion Euros, and
the monthly turnover of about 60 million Euros," Vilen Khachatryan
told Tert.am.
The economist said he expects the Dollar and Euro prices to become
equal until mid-2015.
"The Dollar is gaining value against other currencies, and there are
rumors that the US Federal Reserve System has to raise the interest
rates. But the banks around the world are against such processes," he
said, noting further that the trend would deteriorate the economic
situation in many countries.
"That is the reason that the banks in Singapore and China send, rudely
speaking, 'messages' to the US Federal Reserve System, warning them
against the move, which they say is harmful for global economy. In
2014, all the currencies except the [Japanese] Yen and several other
lost value against the Dollar," Mr Khachatryan noted.
Asked to comment on possible impacts on the apartment sale and
purchase in Armenia, the economist said he sees that the Dollar surge
caused most bank customers to borrow loans in the national currency in
order to maximum effectively manage personal resources. "If they see
that the exchange rate is going to cross 500 [Drams] threshold, they
know they should not borrow money in Dollars, because their income in
Drams will not suffice them to later pay off the interests. And that
freezes also the mortgage loan market, because people do not run the
risk of borrowing loans, as that would put them to further trouble.
But we observe a deflation trend on the market - about 10%-20%. Very
often, those [selling apartments] offer a price and then step aside,
leaving the floor open to the one who needs money. So what we see is a
long-lasting situation that obliges us to wait," he explained.
http://www.tert.am/en/news/2015/01/31/vilen-khachatryan/1575497
From: Emil Lazarian | Ararat NewsPress