The refinancing interest rate may be raised by more than 1% in the future, and it will all depend on the situation. This is what Governor of the Central Bank of Armenia Martin Galstyan told reporters today. “The Central Bank will raise the interest rate until there are indicators that will lead to stabilization of prices,” Galstyan said adding that the increase of the refinancing interest rate implies monetary inflation, less availability of financial resources and reduction of investments.

According to him, in 2020, Armenia saw reduction of the pace of crediting, volumes of non-performing loans have grown, and problems with crediting may emerge. “Today, banks are focused on crediting businesses. The signals from banks are such that the reduction of incomes of the population and worsening of the financial situation in 2020 will have an impact on the potential of crediting,” Galstyan concluded.

During today’s session, the Board of the Central Bank adopted a decision to raise the refinancing interest rate by 0.25%, setting it at the 5.5% level.