Foreigners Opened 20,860 Bank Accounts in Armenia in One Month: Central Bank

From February 28 to March 25, 2022, a total of 20,860 bank accounts were opened by foreigners in Armenia. This was reported by the Central Bank of Armenia in response to an inquiry by 1lurer.am.

“In addition to hundreds of new companies being opened and the activation of the tourism sector, this is essentially another impact on Armenia's economy, specifically the banking system, amidst the ongoing events in Ukraine,” the media outlet reported.

Ashot Osipyan, founder of the School of Banking Management and a member of the board of Tajikistan’s Eskhata Bank, stated that this is quite a significant number, although it should be noted that the accounts were not opened for all applicants. “Banks have certain restrictions for opening accounts, referred to as KYC (Know Your Customer). Primarily, accounts have been opened for labor migrants who will receive salaries in Armenia, and for those who have transferred their savings from warmer regions to Armenia, possibly with the intention of making investments in the future,” Osipyan noted.

Armenian banks are providing seamless banking services to these new customers, according to the central bank. Regarding the impact of the increase in new customers, the Central Bank clarified: “An increase in customers is a positive phenomenon for any commercial organization. It indicates an increase in turnover and an expansion of services provided.”

CivilNet previously reported that in accordance with the Central Bank's forecast, the economic impact of Western sanctions on Russia will manifest in a significant slowdown in economic growth rates for Armenia. A further decrease is expected in the industrial sector, estimated at -4.7 percent. Consequently, Armenia's economic growth is predicted to decline from the previously projected 5.3 percent in 2022 to 1.6 percent. The state budget for 2022 is based on a forecast of a 7 percent growth.