HSBC Bank Armenia doesn't expect significant changes of foreign currency interest rates in the market

18 March 2011

HSBC Bank Armenia doesn't expect significant changes of foreign currency interest rates in the market in the result of toughening monetary-credit policy by CB Armenia, said deputy chief executive officer, operational director of financial markets Irina Seylanyan in the press-conference on Friday.

Mentioning that high inflation is registered in the country, Seylanyan said that CB conducts right policy on toughening monetary-credit policy which can help to restrain inflation.

In February 2011 inflation of 1.9% was registered in Armenia. In its result inflation in 12 months was 12.4%. With the purpose of restraining the inflation, CB Board increased refinancing rate by 0.5 percent points on march 4 defining it in the amount of 8.25%.

Seylanyan said that increase of refinancing rate can promote significant increase of interest rates. In January, interest rate of long-term credits in drams for physical entities increased by 0.1 p.p. making 18.7%, average interest rate of foreign currency credits – 0.7 p.p. making 16.9% versus December.

January, interest rate of long-term credits in drams for legal entities reduced by 0.7 p.p. making 13.6%, average percent rate of foreign currency credits increased by 0.3 p.p. making 12.7% versus December.

ARKA

Last updated on: 01/04/2011 14:00