YEREVAN, October 31. /ARKA/. Loan interest rates are gradually moving down in Armenia, Mher Abrahamyan, chairman of the Union of Banks of Armenia, told journalists on Wednesday. In his words, the downward movement of interest rates is seen either on loans in the national currency or on loans in foreign currencies, and this drives banks' margin down.

Abrahamyan said that loan interest rates have shed 4.5-5 percent in Armenia over a period between 2014 and 2019. He expects no significant changes in the next year. In his words, rates are though to remain unchanged in 2020, though this depends on the central bank's policy. "I think they will remain at the same level. Most probably the dynamics will be stable, and the same applies also to deposits," he said.

Abrahamyan also pointed out the downward movement of deposit interest rates, but in his opinion, they will be stable the next year. He said that the deposits have grown not only over the third quarter - they have been growing already several years, and this growth shows the population's confidence in the country's banks. "The last bank bankruptcy decision in Armenia has been made 17 years ago, in 2002, and this shows the stability of the banking system, and the growth of deposits in banks shows that the country's population trust the banking system and prefer to keep money at banks."

Nowadays, he said, deposits is one of ways to save money, and there is also an opportunity to purchase securities and invest in other assets. The banker also stressed that deposits are safer than other instruments. Besides, there is a deposit security fund, which ensures the return of up-to-AMD 10-million deposits , which enhance people's confidence in the banking sector as well. "In addition, deposit interest rates stand at annual 9 to 10%, and this is quite beneficial," he said.

Abrahamyan still called on citizens to invest their money also in other financial instruments, including savings accounts and securities, which are quite attractive. They are issued either in drams or in US dollars. "I mean bonds, since Armenia's market is just being shaped," he said. "It is also possible to invest money in bonds at an international market through investment companies, such as Apple and Microsoft. Our capital market is just forming and it is still difficult to speak about major changes and investments in this area." -0---