Commercial banks in Armenia are free to decide whether to halt or continue the use of the Russian Mir payment system after warnings from Washington over the risk of falling foul of US sanctions on Moscow, the Central Bank of Armenia said.
Mir became an alternative for Russian travelers after their Visa and MasterCard cards stopped working abroad in response to Russia's 'special military operation' in Ukraine.
"Commercial banks independently manage their risks, including those related to sanctions. As for changes in the customer service process, commercial banks will notify customers in due course in case of changes in their service terms," the Central Bank said in response to an inquiry made by the Public Television of Armenia.
The U.S. Treasury warned banks outside the United States that dealing with Mir would “risk supporting Russia’s efforts to evade U.S. sanctions.”
According to card’s issuing company's estimates, more than 100 million Mir cards have been issued since the system launched in 2015.
Meanwhile, the social networks and Armenian media reported that holders of Mir cards faced difficulties when withdrawing money from ATMs of some local banks. According to the Union of Banks of Armenia, almost AMD 132.9bln worth transactions were made with the cards issued by foreign banks in Armenia in the first half of 2022, 22% of which were transactions with Mir cards.
According to the specialists, there are no risks for the Armenian financial system and there will be no special shocks if the restrictions (on Mir system) are applied.
Edgar Aghabekyan, an expert at Amberd analytical center, noted in his comments for the Public Television that the foreigners who settled in Armenia are mainly residents and use the cards of other payment systems, particularly Visa.
"The Central Bank, naturally, will not want to put the whole financial system at risk, and under these conditions, our banks or their partners may take such a step (suspend the use of Mir system), which is unlikely to lead to significant problems," Aghabekyan said, ARKA reports.
See all the news
Tata Power’s CEO Pays Visit to BMG
NEQSOL Holding has won defamation case against Communications Commission
Europe's largest crypto exchange WhiteBIT has partnered with Netflix
Interview with Albert Park, ADB’s Chief Economist - By Elene Kvanchilashvili, Forbes Georgia Executive Editor in Chief
This year, the VIII international literature festival Odesa will be held in Batumi
Georgian Commercial Banks Boost Business loan portfolio for large enterprises
High blueberry exports from Georgia In July
Op-Ed: Gold and Inflation
სებ-ი კრიპტობაზრის რეგულირებას გეგმავს - რა იცის სექტორმა?
#BMGAUTO: #AUTOრემონტი - რა ეტაპზეა ავტომობილი?
Fitch Affirms TBC Leasing at 'BB-'; Outlook Stable
What regime of sanctions applies to Russian oil and what requirements Georgia has to comply?
#BMGAUTO: Dodge magnum SRT8 - 6.1 hemi, BMW E46 M3 - CABRIO, AUDI A7 3.0T FSI Quattro S Line
#საქმიანები: მაკა ბატიაშვილის მაქსიმალური მინიმალიზმი
#რედაქტ2: გიორგი ისაკაძის ინტერვიუ სოსო ტყემალაძესთან - პრემიერ-მინისტრის მრჩეველი, რაგბის კავშირის პრეზიდენტი / 16.06.2022
#საქმიანები: "პატარა ბაზარი" - ქართული ბიზნესი ფრანგული შტრიხებით - ქეთევან მესხი
კადრების დეფიციტის და კვალიფიკაციის პრობლემა ტურიზმში
"USA supports Georgian economic by working with American firms to enter to Georgian market" - Degnan visited Batumi Multimodal Terminal
#BMGAUTO: Autoრემონტის პირველი გამარჯვებული - როგორ მივიღოთ მონაწილეობა გათამაშებაში?
#საქმიანები: მეტი ნატო - ნატალია მამაგულიშვილის თავგადასავალი