50 Percent Of Armenian Banks Forecast Higher Interest Rates For Depo


Oct 15, 2008

YEREVAN, October 15. /ARKA/. Almost half of the Armenian commercial
banks (11 out of 22) forecast rise in interest rates for short-term
dram deposits by late December, compared to early September.

The others, including five leading local banks, do not think that
is apt to happen, the Central Bank of Armenia (CBA) reports in its
quarterly survey of commercial banks and credit organizations.

Nine banks, who have 30.28% share in total bank assets, say interest
rates for long-term deposits are likely to remain unchanged. Thirteen
banks forecast higher interest rates for long-term deposits.

As to foreign-currency deposits, 12 banks think rates for long-term
and short-term deposits will remain unchanged, whereas the rest of
the banks expect higher rates.

Local banks forecast 41.8bln drams growth in attracted deposits by
late December and 72bln drams increase in March 2009 (compared to
September 2008). The banks expect to attract foreign investments
worth 26.8bln drams in Q4 2008 (33.3bln drams in Q1 2009).

According to CBA, liabilities of Armenian banks totaled 712.7bln
drams in early September, with 203.5bln worth fixed liabilities and
257.9bln worth short-term liabilities. The rest of the sum is loro
accounts of banks and liabilities to financial organizations.

Average interest rates for short-term dram deposits were set at 7%
in September 2008. Interest rates for dollar deposits to individuals
were 5.3% in the same period. Average interest rates for legal entities
were 6.3%.

Annual interest rates for foreign-currency deposits were set at 2.5%.

Twenty-two commercial banks are currently operating in Armenia.

From: Emil Lazarian | Ararat NewsPress

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Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS