Better coordination in Eurasian Economic Union’s finance sector to add 0.4 p.p. to Armenia’s GDP growth

YEREVAN, February 24. /ARKA/. A closer coordination in the Eurasian Economic Union’s finance sector will add 0.4 percentage points to Armenia’s GDP growth, experts at the Eurasian Development Bank say. 

In their opinion, significant share of trade with other members of the Eurasian Economic Union and cheaper financial resources give obvious benefits to Armenia.  

They say the Eurasian Economic Union development implies a coordinated monetary policy, harmonization of financial market laws and formation of a single financial market for ensuring free movement of capital among the union member countries. 

A common financial market will produce a significant economic effect and will allow member countries to make investments within a single market receiving maximum return, to distribute their risks and to down lending cost, especially for small economies. 

The union found after surveying financial organizations that it is possible to reduce the financial sector’s costs by 10-15% if market entry barriers and restrictions connected with banks and insurance companies’ current activity are removed. --0---