International Banking Conference Opens in Yerevan

YEREVAN (Noyan Tapan)–A two-day international conference on banking control problems opened in Yerevan June 8. Participating in the conference are 20 delegates of the International Monetary Fund Netherland Group (the Netherlands–Israel–Cyprus–Bosnia–Herzegovina–Macedonia–Bulgaria–Romania–Croatia–Moldova–Ukraine–Georgia–and Armenia). The key note speakers at the conference were representatives of the Netherlands and Israel–and the Central Bank of Armenia presented its new concept of banking control for the next 4-5 years.

Speaking at the conference–CB President Tigran Sargssian pointed out that at the current stage of the banking system development the Armenian CB has to "resist" the risks that could escape the CB’s attention. He pointed out the need for improving the human–documentational and other factors in the banking control sphere and expressed concern over the widening gap between the banking system and Armenia’s economy. Under conditions of bank rates reduction–the difficulties of economic crediting remain: numerous bankrupt enterprises–low level of business plans and managers–nonconformity of accounting systems to international standards–shadow economics–and more. Sargssian said that impunity for non-repayment of credits by enterprises results in devaluation of credit portfolios and lowering of the efficiency of the banking system.

Welcoming the conference participants–Minister of Finance and Economy Levon Barkhudarian pointed out the need for finding a compromise variant in the matter of crediting risk and of crediting of the real sector of economy.


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