Vache Gabrielyan: Armenian national currency tends to strengthen

PanARMENIAN.Net - Vice Chairman of the Central Bank of Armenia Vache Gabrielyan said that many people were expecting the prices for real estate to decrease considerably in 2009.

Besides, under a 14% economic recession in 2009, which was conditioned by decline in the construction industry, many investors have decided to postpone their emissions, Gabrielyan told Cbonds Russia & CIS Fixed Income Conference on July 1.

Drop was recorded in consumer credits during the first half of 2009. However, the situation has started improving since September 2009. “We have managed to restore the volumes of bank crediting, and by the end of 2009 these volumes were equal to the index of 2008,” Gabrielyan noted.

Referring to steps, which had an impact on the development of corporate bonds market, he pointed to the CBA decision on return to the floating rate of the national currency in 2009. “The national currency depreciated by 25%, what has insignificantly hindered the development of this market,” Gabrielyan said, adding that the market was growing in 2008 and many companies were expressing readiness to implement emission, but this trend has stopped in 2009.

Currently, Armenia’s economy is growing, and 8.8% increase was recorded during five months of 2010. Besides, the government manages to control inflation to bring its annual rate to 5.5%, Gabrielyan said, adding that the national currency is also strengthening.