Interest rates of the foreign exchange loans may be increased certainly in the near future in Armenia, Artak Hanesyan, Ameriabank CEO - Chairman of Board, told reporters, on Wednesday.
As the foreign exchange compulsory reserve requirement for banks and the refinancing rate were increased, the interest rates on deposits in terms of the national currency (AMD) rose by some 4%-5%.
"The situation in the banking market is favorable for raising deposits in AMD and reducing the dollarization level. The population can take advantage of the given opportunity, as
AMD deposits have become more profitable," the banker said.
Hanesyan believes that banks are likely to increase the interest rates on foreign exchange loans. "Consequently, the interests on forex deposits may also be increased in the near future," he said.
On December 17, 2014, the Cebtral Bank of Armenia (CBA) increased the reserve requirements for commercial banks in foreign currency from 12% to 24% (min). Armenian banks and the branches of foreign banks operating in Armenia place these reserves in terms of the Armenian dram with the Central Bank for the raised forex funds and the funds on impersonal metal accounts. The reserve requirement for the national currency did not change staying at 2%.
The Central Bank of Armenia (CBA) has raised the refinancing rate from 9.5% to 10.5%. The CBA press service has told ArmInfo that the decision was taken at the CBA Council's session on Feb 10. The refinancing rate was previously raised on January 22 from 8.5% to 9.5%, and on 23 December 2014 - from 6.75% to 8,5%. CBA has also reduced the Lombard repo rate from 17% to 14.5%. On 3 Dec 2014 the CBA raised the Lombard repo rate from 10.25% to 21%. On 23 Dec 2014 it reduced the rate to 20%, and on 22 Jan 2015 - to 17%.