CBA Chairman : No World Financial Crisis Effects Recorded In Armenia

CBA Chairman: No World Financial Crisis Effects Recorded In Armenia

Arka.am
Nov 10, 2008

STEPANAKERT, November 10. /ARKA/. Armenias financial system has avoided the effects of the world financial crisis recorded in other countries, Chairman of the Central Bank of Armenia (CBA) Artur Javadyan said.

I have recurrently stated that Armenias banking system is stable and properly controlled; it is overcapitalized and we have sufficient liquidity, Javadyan told journalists in Stepanakert.

Yet, he stressed that some effects may be recorded next year. For this, we have developed several scenarios of preventive measures to be started by the Central Bank if required, he said.

Javadyan said that Armenian banks learned some lessons from the world financial crisis they toughened crediting terms and became more conservative.

This, in its turn, created atmosphere when the banks have to somehow raise interest rates for financing, Javadyan said. He also reminded that the Central Bank itself, when it encountered high inflation, gradually raised the refinancing interest rate and this also had its effect on the bank credit rates.