prime Minister Nikol Pashinyan visited the Central Bank and participated in the reception organized on the occasion of the coming New Year and Christmas, the government reports.
“The event was attended by President of the Republic Vahagn Khachaturyan, Deputy Prime Ministers Mher Grigoryan and Tigran Khachatryan, Head of the Prime minister’s Office Arayik Harutyunyan, President of the Central Bank Martin Galstyan, members of the Government, deputies of the National Assembly, representatives of the Central Bank and financial banking system.
Prime Minister Pashinyan delivered a speech in which he stated:
“Dear representatives of our banking system,
I welcome you all and I must note that the Central Bank is obviously one of the most significant institutions of our state, and in general, the government’s policy since 2018 has been: We must ensure the proper conditions to ensure the institutional independence of the Central Bank. And we have consistently followed this policy, which did not mean a break at all, because, in fact, the representatives of the Central Bank participate in all our strategy discussions, but at the same time we decide made an obvious decision, which has been a subject of discussion in armenia for a long time, that the institutional separation of functions should be fully ensured.
I am sure that this is also the reason why we, having gone through very severe shocks, have been able to ensure macroeconomic stability, because the Armenian government, of course, has and expresses its positions and approaches on all issues, but the government has never crossed institutional lines and relies on the institutional capacity and duty of the Central Bank. I think this decision has justified itself.
And, indeed, in our financial market, there were complications related to the general macroeconomic environment, but it is also this approach that we were able to make a precise division of labor, everyone did his job, as a result of which: a) macroeconomic stability was ensured in the most critical period, and After that, we have been successfully providing high economic activity and growth for several years, and, in fact, according to the calculations of the Central Bank, more than 28 percent economic growth has been ensured in Armenia since 2018.
I want to emphasize that the banking system in general operates in an environment without political pressure. as these nuances, which are not observed, are not recorded, they provide a background for the stability of macroeconomic and financial markets. And when we combine all this with the environment of high economic growth, we see that our banking system also has remarkable indicators 2023 As of November, the total deposit portfolio of the Armenian banking system reached a record 5 trillion 277 million drams. It is very important that the growth is stable and continuous. this indicator exceeds the indicator of October by almost 84 billion drams, 1.51 percent.2022 to the indicator of the same period – 13.46 percent, and in 2018 the deposit portfolio has essentially doubled over 95 percent.
The total credit portfolio of our banking system has also recorded a record volume: as of november, 5 trillion 365 billion 604 million drams, which is again 2.2 percent higher than the October index, 21.3 percent higher than the November index of last year, and 2018. I think it is important to note that the total deposit portfolio exceeds the total loan portfolio by 253 billion drams, which is a very important guarantee of the stability of the banking system.
I would like to raise one or two more facts. As of November 30 of this year, the number of clients of the banking system was 4 million 442 thousand 950 people, which in 2022 increased by 19.3 percent, and in 2018 by 65.7 percent. As of September 30, the total number of customer accounts of the banking system was 8 million 995 thousand 422, which in 2022 is 22 percent more than in 2018. by 78 percent.
These indicators are impressive and along with the capital increase mentioned by the Central Bank President, the stability reserve of our banking system has increased somewhat, which is a very important circumstance to increase the potential of economic growth. The fact that the deposit portfolio is much larger than the loan portfolio also inspires hope that the banking system still has some potential in terms of contributing to at least 7 percent economic growth next year interest in the
I want to congratulate all of us on the occasion of these indicators and also thank the people who have made efforts so that we are in the range of green indicators. , which exists in the economy and in the banking system, the government tends to promote that policy.
I also want to emphasize that we have been implementing certain social programs in recent years, with the hope that the partners of the banking system will support and actively participate. to inform this is an critically important partnership.
I also think that conversely, we see new manifestations in our economy, which are also related to the banking system. We see certain trends in the stock market 2018-2019 We were discussing how critically important a branch it is indeed in the macroeconomics, I am glad that there is a certain movement here. That’s how it should be. To revive the market, we have no other expectation, it is important for us that this mechanism starts working sure, I think we’ll see some new players there.
I thank all of you in 2023. for the work done during and of course, I am sure that we are all in a good mood.as in previous years, in 2024 We will also ensure high economic growth in the Republic of Armenia. for this, of course, the effective work of all branches of the government is necessary, but the Central Bank and the banking system obviously have a very critically important role in solving this political problem.
I thank you for this willingness and attitude that next year, when we gather here, not only the banking system, but also the macroeconomic indicators of Armenia in general will be in the green zone and we will all feel satisfied with our work, ensured by economic growth and development. Congratulations Happy New Year and Christmas to you and all your families.”
What are the key factors contributing to Armenia’s economic growth sence 2018?
Title: Insights on Armenia’s Economic Landscape: An Interview with Central Banking Expert Dr. Anahit Ter-Antonyan
time.news Editor: Good day, Dr. Ter-Antonyan! Thank you for joining us today to discuss the current state of Armenia’s economy, especially in light of Prime Minister Pashinyan’s recent visit to the Central Bank.
Dr. Anahit Ter-Antonyan: Thank you for having me! It’s a pleasure to discuss the critically important developments in Armenia’s economic landscape.
Time.news Editor: Prime Minister Pashinyan emphasized the significance of institutional independence for the Central Bank during his recent speech. How crucial is this independence in maintaining macroeconomic stability?
Dr. Ter-Antonyan: Institutional independence is vital for any central bank. It allows the institution to make decisions based on economic data and long-term stability rather than short-term political pressures. In the case of Armenia, this independence has been especially significant in navigating economic shocks, ensuring that monetary policies are focused on stability and growth rather than influenced by political agendas.
Time.news Editor: Prime Minister Pashinyan mentioned that Armenia has achieved over 28% economic growth since 2018. To what do you attribute this remarkable growth?
Dr. Ter-Antonyan: Several factors contribute to this growth. Firstly, the government’s decision to maintain a clear separation of functions between the state and the Central Bank ensures that monetary policy can be enacted effectively. Additionally, the implementation of structural reforms, attracting foreign investment, and harnessing the potential of the local banking system have also played significant roles. The surroundings has been ripe for high economic activity, which, as we see, has yielded positive results.
time.news Editor: Speaking of the banking system, what indicators suggest its current strength considering the Prime Minister’s remarks about a record total deposit portfolio of over 5 trillion drams?
Dr. Ter-Antonyan: The deposit portfolio is a key indicator of public confidence in the banking system. A record-high figure suggests that not only are people saving more, but they also trust the stability and future prospects of the banking institutions. This trust is bolstered by a lack of political interference and a stable economic environment,which fosters a sense of security among depositors.
Time.news Editor: The Prime Minister’s plan to ensure the institutional independence of the Central Bank appears to be a long-term strategy. What challenges do you foresee in maintaining this independence in the future?
Dr. Ter-Antonyan: That’s an critically important question. While the current trajectory seems promising, challenges such as changing political dynamics, external economic pressures, and social unrest can jeopardize this independence. It’s crucial that the government remains committed to this framework and ensures that the Central bank has the tools and autonomy needed to effectively manage monetary policy regardless of the political climate.
Time.news Editor: How are economic policies tailored to both respond to current challenges while fostering growth,as mentioned by the Prime Minister in the context of “high economic activity”?
Dr. Ter-Antonyan: Economic policies need to be flexible and responsive. The government must continuously evaluate economic indicators and adjust policies accordingly. In recent years, a focus on innovation, digitalization, and creating a business-pleasant environment has been productive. Key sectors such as technology and tourism have seen significant investment, which not only counters current challenges but also positions Armenia for sustainable future growth.
Time.news Editor: what would be your advice to Armenians who are currently navigating this economic landscape?
Dr. Ter-Antonyan: My advice would be to stay informed and engaged with financial literacy—understanding the banking system, investment opportunities, and being aware of economic policies can empower individuals. With the government and Central Bank working toward stability and growth, there are abundant opportunities for both investment and personal financial advancement.
Time.news Editor: thank you, dr. Ter-Antonyan, for your valuable insights today. It’s encouraging to hear about the resilience and potential of Armenia’s economy.
Dr. Ter-Antonyan: Thank you for the opportunity. I look forward to seeing how Armenia continues to grow and navigate the complexities of the global economy.