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Armenian Banks Paralyzed for 14 Days
Roza Hovhannisyan, Reporter
Business - 09 January 2015, 01:05
In fact, Armenia's financial market is in uncertainty which may
produce most dangerous consequences and developments, said the
economist Vardan Bostanjyan in an interview with Lragir.am, adding
that today it is impossible to rule out likelihood of ups and downs in
the financial market.
The economist notes that negative developments in the Russian economy
causing the collapse of the ruble do not tend to stop. And the
behavior of the Armenian dram is determined by developments relating
to the Russian ruble.
"The fluctuations of the rate of the Russian ruble directly impact the
dram. As the people of Armenia spent their dram amounts during the
holiday season, and loans were mainly consumer ones, we have not spent
money on development, there are no optimistic expectations," the
economist says.
Vardan Bostanjyan says the Armenian banks have been closed for 12
days, which has negative consequences. According to him, it is
impossible to overcome problems by not working, it was necessary to
fight against these difficulties.
"It turns out that we are not undertaking targeted actions to relieve
the situation. In this situation, there is danger that ups and downs
in the financial market and bank system will repeat. It is noticed
that the entities with still a speculative stance and mood are not
resting, they are still considering how to benefit from fluctuations
of the exchange rate. Interest has become a purpose for some people,
which leads to generally negative developments for the whole country,"
he says.
Economic observer Haik Gevorgyan predicts revaluation of the dram with
ensuing negative consequences for the economy. According to him, after
January 12 when the banks open we will witness fluctuations of the
rate of exchange.
"Banks are the blood vessels of the economy and this system is
paralyzed for 14 days, is not working. Unlike the past years when it
did not have such importance, now the situation in the foreign
exchange is tense, tending to get tenser. On the 12thwhen the banks
open, we will see drastic fluctuations of the exchange rate, which
will have a very bad impact on the economy," Haik Gevorgyan told
Lragir.am.
According to his predictions, the dram will devaluate, the Central
Bank will have to make big injections into the market to even the
fluctuations. It is impossible to predict today to what extent the
Central Bank will succeed.
"The situation in the Russian economy reflects the situation in
Armenia. Signals from Russia press the rate of the dram down but since
the banks are not working, today's rate does not reflect the real
picture," Haik Gevorgyan says.
http://www.lragir.am/index/eng/0/economy/view/33386#sthash.gT6lU9hN.dpuf
Roza Hovhannisyan, Reporter
Business - 09 January 2015, 01:05
In fact, Armenia's financial market is in uncertainty which may
produce most dangerous consequences and developments, said the
economist Vardan Bostanjyan in an interview with Lragir.am, adding
that today it is impossible to rule out likelihood of ups and downs in
the financial market.
The economist notes that negative developments in the Russian economy
causing the collapse of the ruble do not tend to stop. And the
behavior of the Armenian dram is determined by developments relating
to the Russian ruble.
"The fluctuations of the rate of the Russian ruble directly impact the
dram. As the people of Armenia spent their dram amounts during the
holiday season, and loans were mainly consumer ones, we have not spent
money on development, there are no optimistic expectations," the
economist says.
Vardan Bostanjyan says the Armenian banks have been closed for 12
days, which has negative consequences. According to him, it is
impossible to overcome problems by not working, it was necessary to
fight against these difficulties.
"It turns out that we are not undertaking targeted actions to relieve
the situation. In this situation, there is danger that ups and downs
in the financial market and bank system will repeat. It is noticed
that the entities with still a speculative stance and mood are not
resting, they are still considering how to benefit from fluctuations
of the exchange rate. Interest has become a purpose for some people,
which leads to generally negative developments for the whole country,"
he says.
Economic observer Haik Gevorgyan predicts revaluation of the dram with
ensuing negative consequences for the economy. According to him, after
January 12 when the banks open we will witness fluctuations of the
rate of exchange.
"Banks are the blood vessels of the economy and this system is
paralyzed for 14 days, is not working. Unlike the past years when it
did not have such importance, now the situation in the foreign
exchange is tense, tending to get tenser. On the 12thwhen the banks
open, we will see drastic fluctuations of the exchange rate, which
will have a very bad impact on the economy," Haik Gevorgyan told
Lragir.am.
According to his predictions, the dram will devaluate, the Central
Bank will have to make big injections into the market to even the
fluctuations. It is impossible to predict today to what extent the
Central Bank will succeed.
"The situation in the Russian economy reflects the situation in
Armenia. Signals from Russia press the rate of the dram down but since
the banks are not working, today's rate does not reflect the real
picture," Haik Gevorgyan says.
http://www.lragir.am/index/eng/0/economy/view/33386#sthash.gT6lU9hN.dpuf