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EX-PRIME MINISTER: AMID STATEMENTS ON SME DEVELOPMENT, DECISION TO REDUCE NUMBER OF BANKS IN ARMENIA IS SHEER MOCKERY
by Ashot Safaryan
Tuesday, February 24, 21:02
At today's session of the Armenian Parliament, MP from the Armenian
National Congress faction, ex-Prime Minister Hrant Bagratyan strongly
criticized the policy of the Armenian Central Bank, which made a
decision on Dec 30 2014 to tighten the minimum total capital standard
for commercial banks to 30 bln AMD (versus the current 5 bln AMD)
starting from 1 Jan 2017. Bagratyan believes that the CB's steps
hinder the SME development.
"In Russia one needs 4 mln USD to open a bank, in Armenia one needs
60 mln USD. How is it possible to develop small business?! The CB
intentionally hinders the opening of small banks. If the lending rises,
increase the capital. Why should you make the banks leave the market
and why should you leave hundreds of people without a job?!" he said.
He said that the CB's decision has already affected the economic
growth rates in January and these rates promise nothing good.
To recall, January had economic decline not only in 2015, but also
in the previous years.
To note, starting January 1 2017, a new standard of minimal total
capital - 30 billion drams versus current 5 billion drams - will be
introduced in the banking system of Armenia. The Central Bank Council
made the given amendment to the provision 2 of the Law "On Regulation
of the activity of banks and basic economic standards of the banking
activity" on 30 December 2014. The amendment will apply to all the
participants in the banking system of Armenia. The banks have enough
time to meet the new requirements. This tightening will lead to merger
of banks and bigger actors will emerge in the banking sector, which,
in turn, will ensure a higher quality and more accessible banking
services and health- competition. In addition, the banking sector
will become more efficient and stable. Favorable environment will be
created for introduction of new technologies and products, which will
help involving Armenian banks into the international equity market
and creating a basis for further enhancement of cooperation. The banks
will become more flexible and resistant to economic shocks. This will
promote also financial mediation.
http://www.arminfo.am/index.cfm?objectid=465BB110-BC4F-11E4-96DE0EB7C0D21663
From: Emil Lazarian | Ararat NewsPress
by Ashot Safaryan
Tuesday, February 24, 21:02
At today's session of the Armenian Parliament, MP from the Armenian
National Congress faction, ex-Prime Minister Hrant Bagratyan strongly
criticized the policy of the Armenian Central Bank, which made a
decision on Dec 30 2014 to tighten the minimum total capital standard
for commercial banks to 30 bln AMD (versus the current 5 bln AMD)
starting from 1 Jan 2017. Bagratyan believes that the CB's steps
hinder the SME development.
"In Russia one needs 4 mln USD to open a bank, in Armenia one needs
60 mln USD. How is it possible to develop small business?! The CB
intentionally hinders the opening of small banks. If the lending rises,
increase the capital. Why should you make the banks leave the market
and why should you leave hundreds of people without a job?!" he said.
He said that the CB's decision has already affected the economic
growth rates in January and these rates promise nothing good.
To recall, January had economic decline not only in 2015, but also
in the previous years.
To note, starting January 1 2017, a new standard of minimal total
capital - 30 billion drams versus current 5 billion drams - will be
introduced in the banking system of Armenia. The Central Bank Council
made the given amendment to the provision 2 of the Law "On Regulation
of the activity of banks and basic economic standards of the banking
activity" on 30 December 2014. The amendment will apply to all the
participants in the banking system of Armenia. The banks have enough
time to meet the new requirements. This tightening will lead to merger
of banks and bigger actors will emerge in the banking sector, which,
in turn, will ensure a higher quality and more accessible banking
services and health- competition. In addition, the banking sector
will become more efficient and stable. Favorable environment will be
created for introduction of new technologies and products, which will
help involving Armenian banks into the international equity market
and creating a basis for further enhancement of cooperation. The banks
will become more flexible and resistant to economic shocks. This will
promote also financial mediation.
http://www.arminfo.am/index.cfm?objectid=465BB110-BC4F-11E4-96DE0EB7C0D21663
From: Emil Lazarian | Ararat NewsPress