Armenian former prime minister Hrant Bagratyan said that gross assets of Armenia’s commercial banks continue reducing, while the demand for loans is decreasing from day to day.

“The refinancing rate of the Central Bank of Armenia is too high, thus, commercial banks cannot lower loan interest rates. And if the Central Bank of Armenia decreases the refinancing rate, 9.4% inflation rate will grow to make 20%,” Bagratyan told a press conference on January 14, answering a PanARMENIAN.Net reporter’s question.

According to him, only struggle against monopolists can assist in overcoming the situation.

“The Armenian government will not take this action. Thus, it is impossible to lower loan interest rates in the country. They can be decreased by maximum 0.5%, what will not have a significant impact,” concluded Bagratyan.