Banks to Eliminate Penalties and Fines on Problematic Loans

Central Bank President Martin Galstyan has presented the results of the financial banking system for 2024 and future development prospects. The profitability of the financial system, based on capital calculations, is approximately 18% annually. Banks possess significant capital, with the regulatory capital amounting to around 1.7 trillion drams, while assets total about 10 trillion drams. The system is not only commensurate with the GDP of our country but also stands out for its high liquidity, enabling it to fulfill its obligations seamlessly.

At the initiative of the government, banks will eliminate penalties and fines on problematic loans accumulated over the years. The Central Bank has aimed to reduce the inflation target to 3%, which will contribute to long-term economic stability. This will help reduce risk premiums, stimulate economic growth, and enhance investor confidence.

The floating exchange rate policy applied by the Central Bank serves as a shock absorber for Armenia's small and open economy. The processes in the foreign exchange market are determined exclusively by supply and demand, with the Central Bank intervening only in cases of disruptions to the natural course of the market. The Central Bank's monetary policy has solidified citizens' trust in the national currency, which is a crucial foundation for the economy.