Shortage of cash assets is the main reason behind high interest rates on loans, prime minister says

13.06.2018 18:11
Shortage of cash assets is the main reason behind high interest rates on loans, prime minister says

YEREVAN, June 13. /ARKA/. The key reason why Armenia-based banks provide loans at high interest rates is the shortage of cash assets, said Prime Minister Nikol Pashinyan in a live broadcast on his Facebook page.

Pashinyan admitted that interest rates on loans in Armenia are very high and called this situation one of the serious problems for the economy. He noted that the government should continue to work on solving this problem.

"There is a shortage of financial resources in the country. This is why we must work to increase the flow of financial resources to Armenia, and the best way to do so is to attract investment. Therefore, we need to solve the problem in accordance with this logic," he said.

The head of government also acknowledged that the terms of mortgage loans also cause concern, saying the government will work to look for ways to address this issue as well.

According to the Central Bank of Armenia, in April the average rate on loans issued by local commercial banks in Armenian drams and repayable in 12 months was 12.34%, and the rate on loans in USD was 7.79%. The average rate on mortgage loans in Armenian drams was 11.4%, and in USD - 9.7%. -0-


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