PRIORITIES OF THE FINANCIAL SECTOR IN ARMENIA DURING THE SANCTION WAR: FOSTERING LENDING AND INVESTMENT THROUGH ONLINE PLATFORMS

Abstract

The paper puts forward the claim that during the sanctions war, "P2P" lending and investment platforms can have priority demand and lead to a synergistic effect for the real sector of the economy. In times of sanctions and/or crisis, the entire economy, including financial market segments, require certain coping approaches that emerge in the form of new and related financial mechanisms, bringing forth new products and services. "P2P" lending and investment platforms can become an effective alternative to investing in shares in the financial market of Armenia, especially for small and novice investors. "P2P" lending platforms in RA are still in their infancy. The international practice of "P2P" lending platforms is presented. The comparative strengths and weaknesses of P2P lending and stock market shares are highlighted, according to their criteria of profitability, security, affordability, liquidity and volatility. Certain mechanisms are proposed for the formation of a matrix of "P2P" lending platforms in the Republic of Armenia. The problem of the competition of the newly created "P2P" lending platforms with the existing institutions of the financial market is considered.