Central Bank President on Interest Rates for Loans

There is a significant demand for loans in Armenia, particularly in the construction, mortgage, and consumer credit sectors. This was stated today by the President of the Central Bank of Armenia, Martin Galstyan, during a meeting with journalists, addressing the question of why loan interest rates are not decreasing in the context of regular reductions in the refinancing rate.

“The Central Bank's interest rate is unitary, meaning it is not specific to particular sectors. If there is high demand for a specific product, the interest rate cannot decrease, as it leads to price increases,” emphasized the Central Bank president.

According to him, if the Central Bank had not lowered the refinancing rate from 9.75% to 7.25%, there would have been a significant increase in loan interest rates in the country. “We have lowered the interest rate, but alongside that, there has been high economic growth over the past three years. Due to external demand, there is enormous interest in loans, which is why interest rates are not showing downward trends. We can assume that they may decrease in the future because our actions are also sending signals for what is to come,” said Galstyan.