Yerevan/Mediamax/. Head of the Department of Financial System Stability and Development of the Central Bank (CB) of Armenia Vahe Vardanyan said in his interview to Mediamax that the debt crisis in the EU countries won’t exert a tangible impact on Armenia.

“At the moment, the main problem is the euro rate and other associated fluctuations on the world markets. In particular, the high level of debt indices in the EU countries makes foreign investors shift from the euro to other currencies or goods instruments. It would have affected our banks if they had had attracted or placed funds in the European currency. But over 90% of foreign currency funds in the Armenian banking system is denominated in the U.S. dollar and in this respect, we don’t expect any direct impact on our economy”, said Vahe Vardanyan.

According to his assessment, the Armenian economy may be affected by reduction of the world demand. “International structures expect that the global economic growth won’t remain at the level which was forecasted before aggravation of these problems: the world demand may reduce which may lead to reduction of demand for our export, copper and molybdenum in particular.

However, he thinks that this will not have a tangible impact on the economy and Armenian financial system either. “Serious fluctuations in prices for metals are least possible. Almost all the forecasts run that the prices will remain on the current level and the possible decrease will be insignificant”, said Vahe Vardanyan.

Touching upon private money transfers, which reduction hit the Armenian economy in 2009, Vahe Vardanyan said that no dramatic developments are expected in this aspect either.

“Oil prices are directly correlated with the revenues level in Russia where the 75-80% of transfers is received from. Russia experiences budget deficit as oil prices fall and it exerts a negative impact on our economy which receives less transfers”, said the CB representative noting there won’t be any abrupt decrease in oil prices according to the forecasts.