ARMENIAN COMMERCIAL BANKS INCREASE CAPITAL
ARKA
March 5, 2009
YEREVAN, March 5. /ARKA/. The Armenian commercial banks have increased
their capital by US $120mln over the last few months, RA Prime Minister
Tigran Sargsyan stated in his interview to the RA Public Television.
This means that bank owners have invested US $120mln in their banks
to secure depositors’ funds by means of their own funds.
The commercial banks also managed to attract US $250mln to ensure
their own stability.
"At present the commercial banks have US $700mln cash at their
disposal, which enables them to serve their clients and economy. That
is, the commercial banks are well prepared for serving the entire
economic system, which was a necessity," T. Sargsyan said.
According to him, the preparation for a floating rate meant enhancing
the commercial banks’ potential.
CBA Board took into account the gradually worsening trade conditions
amid the present global economic and financial crisis, as well as
lower capital flow rates, and decided to restrict its interventions
in the currency market thereby reverting to its floating exchange
rate policy. CBA experts believe that the USD average exchange rate
will be 360-380 AMD/$1 this year.
"Over the last few months the Central Bank has repeatedly stated that
our countries never abandoned the floating rate policy, but had just
gave temporary preference to financial stability," T. Sargsyan said.
According to him, this preference was expressed in stability on
financial markets.
The Premier explained that the stable exchange rate allowed the CBA
to ensure stability of the financial system and gradually bring the
economy to a floating rate regime.
"During a certain period the national currency showed steady
revaluation against the US dollar. However, influenced by the
global economic crisis, our economy found itself in a situation when
devaluation was and transition were required," the Premier said.
T. Sargsyan said that the economy is like a living organism, which
must be prepared for temperature changes.
"The Central Bank has been making statements and explaining its policy,
which actually means preparations for this period. First of all,
this means that the commercial banks were to enhance their potential,
which was done," the Premier said.