Armenian banks lost AMD 4,7 billion in one dayApril 8, 2009 - 19:29 AMT PanARMENIAN.Net - Armenian banks lost AMD 4,7 billion in one day, CBA Chairman Arthur Javadyan told a news conference, commenting on CBA's return to floating exchange rate policy on Mar. 3.According to CBA Chairman, banking system was in highly unfavorable situation, as banks were in short foreign currency position, where the bank's foreign currency liabilities exceed its actives. The reason for such position were expectations formed within 3 months (Dec 2008-Mar 2009) towards foreign currency revaluation and national currency devaluation. Guided by these expectations, many investors withdrew their dram investments, investing dollars instead. In current circumstances, by the end of 2008 the ratio of dram investments to dollar investments comprised 65% to 35%. Upon CBA selling a certain amount of dollars, the ratio changed in favor of dollar investments, comprising 70%(in dollars) and 30% (in AMD) Regardless circumstances mentioned above, situation in banking system is favorable. In 2008 banks' profits comprised AMD 27 billion, and, as no dram devaluation is expected in nearest future, no further losses are expected. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Lithuania sending €100,000 to help Armenia fight floods consequences Armenian Prime Minister Nikol Pashinyan took to social media to thank his Lithuanian counterpart for the contribution. U.S. “deeply troubled” by Azerbaijan's arrest of civil society members The United States is deeply troubled by the continued arrest of members of Azerbaijani civil society, Matthew Miller has said. Turkey condemns Uruguay’s recognition of Armenian Genocide Turkey has condemned a newly passed law in Uruguay that recognizes the Armenian Genocide, TRT reports. For the first time, Armenia votes in favor of Georgia resolution in UN Armenia on Tuesday, June 4 voted for the first time in favor a resolution adopted by the United Nations General Assembly. |