Central Bank Governor Sends Farewell Message

The President of the Central Bank, Artur Javadyan, has sent a farewell message on the occasion of the completion of his term.

“Dear compatriots, honorable colleagues, my term as the President of the Central Bank, spanning 12 years, is coming to an end, during which I have worked tirelessly with our beloved team. This extensive agenda often goes unnoticed by society. However, the results are evident: we have ensured macroeconomic stability and sustainable development of the financial system in our country over these years. The Central Bank has always invested its maximum efforts for the benefit of our state and people.

First, I want to particularly value and express my deep gratitude to the team of the Central Bank and our entire staff, who have carried out their duties with honor and responsibility during these years, demonstrating invaluable professional qualities and commitment to work. I want to direct my thank-you message to our partners in various Armenian and international institutions, whose effective cooperation has consistently aimed at the development and prosperous future of the country.

My thanks also go to the financial institutions of Armenia, with whom we have had a collaborative and constructive journey. It should be emphasized that the Armenian banking system has repeatedly demonstrated a high readiness and prudence to assist state-building and society during difficult economic times.

During these years, the Central Bank has successfully fulfilled its legally assigned tasks. The past years have not been free from various challenges, including a global crisis, regional and internal shocks. However, due to the flexible strategies of financial institutions and the consistent policies of the Central Bank aimed at strengthening and developing stability, these years have not only been about withstanding shocks but also marked by stability and development for the financial system. This is vividly evidenced by significant increases in financial intermediation, accessibility of financial services, and other indicators, as well as the assessments given by international institutions about the policies conducted by the Central Bank and the financial system.

Notably, the summarized results from the financial system assessment program conducted by the International Monetary Fund and the World Bank stated that the Armenian financial system is evaluated as stable, and the regulatory and supervisory processes comply with the Basel core principles of bank supervision by approximately 97%.

We have succeeded in maintaining and strengthening price stability in Armenia. From 2008 to 2019, the average annual inflation rate was 3.9%. During these years, the Central Bank has managed to withstand various economic shocks while maintaining price stability in the most challenging conditions and has been able to reduce and better anchor public inflation expectations. This was best reflected in the behavioral responses of our society during the political changes in 2018 and this year under the conditions of the coronavirus pandemic.

Impressive successes have been recorded in the fight against money laundering and the financing of terrorism. This relates to both the compliance of our country's financial and non-financial systems with international standards in combating ML/FT and the results recorded thanks to the actions of the financial intelligence in a number of notable cases.

The consumer protection and financial education programs implemented, the developed game rules, and the existing procedures are indeed highly appreciated by international reputable organizations in the field. Many countries are interested in studying the Armenian model of consumer protection with a view to implementing it in their own systems.

During these years, the institute of financial system mediators has also been established. In the field of currency issuance, on the occasion of the 25th anniversary of the introduction of the Armenian dram, the Central Bank has issued new third-generation banknotes, distinguished by modern qualitative and protective features. The Central Bank has made significant progress in the issuance of commemorative coins, receiving various prestigious awards and enhancing their international recognition and the promotion of our cultural and scientific heritage.

Apart from the immediate problems enshrined in the law, the Central Bank has spared no effort to support various projects aimed at the prosperity of the economy and society. We have actively participated in the development and implementation of various credit programs in key sectors of the economy carried out by the Government, as well as in various Government initiatives (pension reform, soldiers' insurance fund, and so forth). The companies ‘National Mortgage’ and ‘Housing for Youth’, established during these years, have significantly contributed to the formation of the mortgage market and the implementation of social and sectoral program funding.

While registering our achievements and successes with a sense of pride and satisfaction, I cannot overlook that we have also had shortcomings. However, the Central Bank's team has always been aimed at development, progress, and the realization of set strategic goals. Personnel education and professional qualification development have remained a crucial guarantee of our activity. The Central Bank employs both experienced professionals with international qualifications in various fields and young specialists eager to grow and develop. In some respects, the Central Bank also serves as a unique forge of knowledge acquisition and improvement from which qualified specialists often continue their work in various sectors of the Armenian state and private enterprises.

Dear colleagues, you truly are our pride and the primary guarantor of the Central Bank's achievements. Thank you.

Regarding the institutional development of the Central Bank, it is worth mentioning the opening of the Dilijan Research Center, which has provided us with the opportunity to raise our cooperation with international partners and leading educational institutions to a new level. During these years, we were able to host students from the world's leading universities in Dilijan and hold numerous events of regional and international significance.

The values of the Central Bank include loyalty to the institution and its culture. It involves ensuring the continuity of policies and reforms implemented by the bank. Twelve years ago, when taking this responsible position, I placed great importance on ensuring continuity. I am confident that the new head of the Central Bank, dedicated to the mission and work, will continue to implement the objectives set before the Central Bank in line with the demands of the time, ensuring the interests of our citizens and the state while remaining a reliable partner for the Government and international institutions. I am convinced that the coming years will be unique years of ascent and development.

I am pleased that we have been able to serve our country and people honorably and contribute to the state-building process. With the experience and knowledge gained over the years, I am always ready to share on various platforms and be of service to the development of our country. Wishing everyone good fortune and peace. Thank you,” the message concludes.