Fall in credit interest rates to be registered next year (video)
9 out of 19 Armenian banks have already met the requirement of the Central Bank, according to which until January, 2017 the authorized capital must be replenished by making it AMD 30 billion or USD 60 million. In particular, the biggest Ameriabank has AMD 60.2 billion, ACBA Credit Agricole Bank- AMD 55.5billion, HSBC- AMD 54.56 billion, Ardshinbank- AMD 52.5 billion, VTB- AMD 41.2 billion, Inecobank- AMD 40.7 billion, Armswissbank- AMD 33 billion, Armbusinessbank- AMD 32.1 billion, Araratbank- AMD 31.5 billion. According to the Chairman of the Union of Banks of Armenia Samvel Chzmachyan, 6-7 more banks will collect that capital. Though the rest 4-5 banks have dropped behind, but it doesn’t mean that they won’t replenish. They are also carrying out activities. “Their owners may invest the necessary amount, or new owners may be invited from outside or inside. They may unite,” said Mr Chzmachyan. Chairman of the Union of Banks is sure that at the beginning of next year minimum 15 banks will continue their activities. He thinks that new players will appear in the banking system. The banks, which have such a desire, must enter the market with about USD 100 million capital, if they want to play a serious role. It isn’t accidental that the increase in the authorized capital threshold coincided with Armenia’s membership to the EEU. “Would it be good that the banks of the Eurasian zone entered our market and our banks wouldn’t be able to compete with them for the reason that the credit interest rates were high in out banks; from that point of view the increase in authorized capital is justified,” he highlighted. Samvel Chzmachyan notes that after replenishing the authorized capital the banks will take up the development of the real sector of the economy. “The calculations show that as a result of these enlargements, capitalization in the banking system will increase by USD 300 million, and that is enough resource for our small economy so that the economy can develop.” Banks will have problems with allocation of those funds. As a result it is expected that approximately in the middle of next year fall in credit interest rates will be registered minimum by 2 percent.
