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PRIVATE MONEY REMITTANCES TO ARMENIA FALL BY 7. 5 PERCENT IN 2014 TO $1.7 BILLION- CENTRAL BANK
YEREVAN, February 4. / ARKA /. About $1.728.5 billion were sent
to Armenia in 2014 as private money transfers for non-commercial
purposes through the banks, the Central Bank reported saying the amount
represented a 7.5% or $141.1 million drop from the previous year.
According to a statement on the regulator's official webpage, about
$339.5 million were remitted from Armenia to other countries, up
from $324.2 million remitted in 2013. The rise was 4.7 percent. The
net inflow of remittances thus amounted to about $1.388.9 billion,
down from $1.545.6 billion in 2013.
In December 2014 some $127.3 million were sent to Armenia as private
money transfers, by 9.1 percent more form the previous month, however,
it was 24.5 percent less than in 2013 December.
As usual, the bulk of money transfers - about 82.9 percent or
approximately $1.434.2 billion - came from Russia. When compared to
2013 their amount was 10.7 percent down. In the meantime the amount
of money remittances to Russia grew by 12.6 percent to $203.2 million.
Economists explain the decline in private remittances by continuing
economic stagnation in Russia that experiences also the negative
effects of Western sanctions imposed over the crisis in Ukraine. The
continuing devaluation of the Russian ruble is cited as another major
reason for the decline in the amount of private remittances to Armenia
as the ruble today can buy fewer dollars and Euros.
Money transfers from Russia to Armenia in 2014 November decreased
by 35.4% from November 2013 to approximately $95.1 million, while
the amount of remittances from Armenia to Russia increased by 13.5%
to $17.5 million.
The downward trend in remittances from Russia was observed for the
sixth consecutive months. Remittances along with foreign investments
are among major factors of Armenia's economic growth. According to the
Central Bank, transfers to Armenia in 2013 totaled $1.869.7 billion
or about 17.3% of GDP.
The decline in remittances made international financial institutions
revise downward their forecasts of Armenia's economic growth for 2014.
For example, IMF lowered its earlier forecast to 2.6 percent from
4.3 percent, Moody's lowered it to 2.1 percent from 3.2 percent,
the Asian Development Bank cut it to 3.8 percent from 4.6 percent,
the EBRD dropped it to 3 percent and the World Bank to 2.6 percent
from its earlier forecast of 5 percent.
Their forecasts for 2015 are neither optimistic. The World Bank, for
example, expects Armenia's economic expansion to be 3.3 percent(the
Armenian government projection is 4.1 percent). The most recent EBRD
projection for Armenia suggests a zero growth for 2015, compared to 3.5
percent growth projection in its September report. The new projection
is based on depreciation of the ruble and worsened economic situation
in Russia.
Moody's Investors Service downgraded in January Armenia's issuer
and government bond rating to Ba3 from Ba2, and changed the outlook
to negative from stable because of Armenia's increased external
vulnerability due to declining remittances from Russia, an uncertain
outlook for foreign direct investment (FDI), an elevated susceptibility
to exchange rate volatility.
On January 30 Fitch Ratings agency downgraded Armenia's long-term
foreign and local currency Issuer Default Ratings (IDRs) from 'BB-' to
'B+', with outlook kept stable. The issue ratings on Armenia's senior
unsecured foreign and local currency bonds were also downgraded to
'B+' from 'BB-'. The Country Ceiling was revised to 'BB-' from 'BB'
and the Short-term foreign currency IDR affirmed at 'B.'-0-
http://arka.am/en/news/economy/private_money_remittances_to_armenia_fall_by_7_5_p ercent_in_2014_to_1_7_billion_central_bank/#sthash.r1gKoIV4.dpuf
YEREVAN, February 4. / ARKA /. About $1.728.5 billion were sent
to Armenia in 2014 as private money transfers for non-commercial
purposes through the banks, the Central Bank reported saying the amount
represented a 7.5% or $141.1 million drop from the previous year.
According to a statement on the regulator's official webpage, about
$339.5 million were remitted from Armenia to other countries, up
from $324.2 million remitted in 2013. The rise was 4.7 percent. The
net inflow of remittances thus amounted to about $1.388.9 billion,
down from $1.545.6 billion in 2013.
In December 2014 some $127.3 million were sent to Armenia as private
money transfers, by 9.1 percent more form the previous month, however,
it was 24.5 percent less than in 2013 December.
As usual, the bulk of money transfers - about 82.9 percent or
approximately $1.434.2 billion - came from Russia. When compared to
2013 their amount was 10.7 percent down. In the meantime the amount
of money remittances to Russia grew by 12.6 percent to $203.2 million.
Economists explain the decline in private remittances by continuing
economic stagnation in Russia that experiences also the negative
effects of Western sanctions imposed over the crisis in Ukraine. The
continuing devaluation of the Russian ruble is cited as another major
reason for the decline in the amount of private remittances to Armenia
as the ruble today can buy fewer dollars and Euros.
Money transfers from Russia to Armenia in 2014 November decreased
by 35.4% from November 2013 to approximately $95.1 million, while
the amount of remittances from Armenia to Russia increased by 13.5%
to $17.5 million.
The downward trend in remittances from Russia was observed for the
sixth consecutive months. Remittances along with foreign investments
are among major factors of Armenia's economic growth. According to the
Central Bank, transfers to Armenia in 2013 totaled $1.869.7 billion
or about 17.3% of GDP.
The decline in remittances made international financial institutions
revise downward their forecasts of Armenia's economic growth for 2014.
For example, IMF lowered its earlier forecast to 2.6 percent from
4.3 percent, Moody's lowered it to 2.1 percent from 3.2 percent,
the Asian Development Bank cut it to 3.8 percent from 4.6 percent,
the EBRD dropped it to 3 percent and the World Bank to 2.6 percent
from its earlier forecast of 5 percent.
Their forecasts for 2015 are neither optimistic. The World Bank, for
example, expects Armenia's economic expansion to be 3.3 percent(the
Armenian government projection is 4.1 percent). The most recent EBRD
projection for Armenia suggests a zero growth for 2015, compared to 3.5
percent growth projection in its September report. The new projection
is based on depreciation of the ruble and worsened economic situation
in Russia.
Moody's Investors Service downgraded in January Armenia's issuer
and government bond rating to Ba3 from Ba2, and changed the outlook
to negative from stable because of Armenia's increased external
vulnerability due to declining remittances from Russia, an uncertain
outlook for foreign direct investment (FDI), an elevated susceptibility
to exchange rate volatility.
On January 30 Fitch Ratings agency downgraded Armenia's long-term
foreign and local currency Issuer Default Ratings (IDRs) from 'BB-' to
'B+', with outlook kept stable. The issue ratings on Armenia's senior
unsecured foreign and local currency bonds were also downgraded to
'B+' from 'BB-'. The Country Ceiling was revised to 'BB-' from 'BB'
and the Short-term foreign currency IDR affirmed at 'B.'-0-
http://arka.am/en/news/economy/private_money_remittances_to_armenia_fall_by_7_5_p ercent_in_2014_to_1_7_billion_central_bank/#sthash.r1gKoIV4.dpuf