The President of the Central Bank, Martin Galstyan, presented the financial and banking system’s results in 2024 and the prospects for future development.
The financial system’s profitability based on capital is about 18% per year. Banks have significant capital: their regulatory capital is about 1.7 trillion drams, and their assets are about 10 trillion drams. The system is not only equivalent to our country’s GDP but also has high liquidity, enabling it to fulfill its obligations without interruption.
At the government’s initiative, the banks will cancel the penalties and fines for problematic loans accumulated over the years.
The Central Bank has taken the initiative to lower the inflation target to 3%, which will help long-term economic stability. This will help reduce risk premiums, stimulate economic growth, and increase investor confidence.
The central bank’s floating exchange rate policy serves as a shock absorber for Armenia’s small and open economy. Processes in the exchange rate market are determined solely by demand and supply. The central bank intervenes only in case of disruption of the normal course of the market.
The Central Bank’s monetary policy strengthened citizens’ trust in the national money, which is an important basis for the economy.
