Money & Bank


Central Bank sets strict requirements for provision of investment services related to leveraged transactions in FOREX market
/Dec 24/

YEREVAN – The Central Bank of Armenia (CBA) issued a statement according to which it sets strict requirements for provision of investment services related to leveraged transactions in FOREX market, the CBA told Armenress.

The statement reads: “In recent years the offers for providing access services to the FOREX market by different persons have been intensified in Armenia. The leveraged transactions in the FOREX market are considered as highly risky deals and contain real dangers of loss of the investors’ resources. The leveraged transactions enable the investors to carry out transactions with the volume exceeding the amount invested by him for multiple (several hundred) times. Usually, the offers for making such investments or trade mislead the investor, promising easy incomes, but this has nothing to do with the reality. Moreover, the investor’s loss can be more than the invested money. This market is also not free of abuse cases: the investor sometimes has no chance practically to find out where his monetary investments are kept and there are many cases when the investor is unable to receive his money back.

Given the aforementioned risks, the Central Bank has set strict requirements for the provision of investment services in connection with the leveraged transactions in the FOREX market. In particular, such services can be provided only to professional customers, in other words, to those who have respective experience and knowledge to understand all risks from such deals and make their own investment decisions. The provision of investment services in connection with the leveraged transactions in the FOREX market is banned for non-professional customers.

At the same time, necessary risk restraining mechanisms for the protection of interests of professional customers have been installed”.

Central Bank of Armenia keeps refinancing rate at 6%
/Dec 25/

YEREVAN – The Board of the Central Bank of Armenia made a decision to keep the refinancing rate unchanged, setting it 6.0% during today’s session, the CBA told Armenpress.

1.0% inflation has been recorded in November, and in such circumstances the 12-month inflation decreased comprising 1.8% by the end of the month. The CBA Board assesses that the low inflationary environment will be maintained in the upcoming months and the 12-month inflation will be formed in a somewhat lower level from the targeted indicator.

The global economic growth trends have been in accordance with the predictions under which the central banks of leading countries are gradually toughening the terms of the monetary-loan policy. At the same time, the inflationary environment of main goods has somehow weakened in the international markets, based on which the CBA Board estimates that no inflationary pressures are expected from the external sector in coming months.

The Board records that in the second half of 2018 the gross demand remains relatively weak in connection with the restraining position of fiscal policy and certain weakening of private expenditure. On the other hand, the low inflationary environment, in case of low growth rates of private consumption, contributed to the maintenance of purchasing of real incomes and anchoring inflationary expectations.

Taking into account the aforementioned developments, the CBA Board finds appropriate to keep the current level of the refinancing rate, which is assessed as more promoting, taking into account the increase of interest rates in partner countries. The Board also estimates that in case of predicted macro-economic developments, there will be a need for long maintenance of promoting conditions for ensuring price stability in the medium-term. As a result, the inflation is expected to fluctuate in a lower range, stabilizing over a targeted 4% figure.

In case of deviation risks from the predicted scenario of economic development inflation, the CBA will clarify the monetary-loan policy directions by ensuring the price stability.

Armenian banks annul 7 billion drams in fines and penalties for thousands of borrower
/Dec 27/
YEREVAN – As a result of legislative changes of 2018 July, Armenian banks have annulled fines and penalties of 14963 borrowers totalling more than 7 billion drams, caretaker Prime Minister Nikol Pashinyan said on Facebook.

“Loan histories of nearly 124,000 customers were revised. This process is continuous. Citizens having unreliable loans must visit their creditor banks for achieving agreement in terms of fines and penalties”, he said.

Yerevan City Hall joins “Recycle It” waste sorting and recycling project
/Dec 27/

YEREVAN – The Yerevan City Hall joined the “Recycle It” waste sorting and reprocessing project initiated by ISSD team, the City Hall told Armenpress.

The vision of “Recycle It” is to create waste sorting and recycling culture by installing sorting bins and increasing public awareness about waste recycling.

The project is implemented within the frames of the UNDP/GEF Small Grants Programme since June 2018. 

According to this project, sorting of waste is being carried out already in more than 80 structures in Armenia, including 44 educational facilities (schools, universities, preschools and etc), private companies and residential complexes. The number of project beneficiaries exceeds 100.000. The project participants have an opportunity to sort the following waste: paper, plastic, glass and metal.

Two sorting bins have been installed in the headquarters of the Yerevan City Hall on the sidelines of this project.

The ISSD – Innovative Solutions for Sustainable Development of Communities NGO is a newly-established organization which proposes innovative solutions for waste management, preservation of environment and sustainable development of communities.