CBA: increase in amount of individuals' deposit guaranteeing should keep with economic development

PanARMENIAN.Net - Vice Chairman of the Central Bank of Armenia (CBA) Vache Gabrielyan said that the CBA considers the introduction of amendments to theLaw on Guaranteeing of Compensation for Individuals’ Bank Depositsto be very positive.

"It will not have a considerable impact, but it will increase the population's trust towards the banking system of Armenia,"Gabrielyan told a PanARMENIAN.Net reporter.

The Armenian parliament adopted the bill on introduction of amendments to the Law on Guaranteeing of Compensation for Individuals’ Bank Deposits. As per the amendments, the amount of compensation for AMD and foreign currency bank deposits will total AMD 4mln (instead of previous 2mln) and AMD 2mln (instead of 1mln) respectively.Besides, the Board of Trustees of the Deposits Guaranteeing Fund consisting of representatives of the RA government, parliament, KfW bank and Armenian banks will be revising the amounts of deposits guaranteeing once in five years.

Thus, Mr. Gabrielyan noted that the legislative initiative aims to regulate the field, specifically, if the issue of compensation is considered, it should correspond to the population's savings and incomes, as well as economic development.

"The Law obliges to revise amounts ofindividuals' depositguaranteeing and the Board of Trustees of the Deposits Guaranteeing Fundshould perform recalculations once in five yearsas a minimumand make suggestions based on them," he concluded.