YEREVAN. – Confidence in providing business loans is being restored among banks in Armenia, said Aram Kayfajyan, the head of an investment company, speaking with Armenian News-NEWS.am.

In his words, despite the easing monetary conditions, the liquidity accumulated in banks has not gone to the real sector. 

As per Kayfajyan, the reason is Russia’s economic difficulties, which reflect also on Armenia’s economy and its banking sector. 

Even though the funds have not reached the real sector, the demand for government bonds has lowered their interest rates, and this also means the value of paying off national debt. 

“It’s good for economy that money enters into the business; but the banks should monitor their risks,” noted Aram Kayfajyan. “I’m beginning to notice that business loans are gradually increasing [in Armenia].”