YEREVAN, November 15. /ARKA/. The ratio of banking loans to GDP has risen by 11% in Armenia since 2008, Arthur Javadyan, chairman of the Central Bank of Armenia, said Tuesday in the National Assembly.
“In 2008 the ratio of loans to GDP ranged between 16% and 17%, while now it reaches 28% showing a significant increase in lending,” he said.
Javadyan said that the aggregate loan portfolio of Armenian banks totals over AMD 1150 billion now – this is 30% more than in 2010.
“Interest rates have shed 1.5% or 2% for three years,” he said. “We are implementing some joint programs with the government to make some types of loans, particularly mortgage and agricultural loans, available.”
Bad loans made up 30.72% of Armenian banks’ aggregate loan portfolio in late September.
According to banks’ financial reports, their loan portfolio, including loans extended to clients and other borrowings, amounted to about AMD 1159.1 billion in late September 2011 against AMD 1088.8 billion in early July 2011, and loans extended to individuals totaled AMD 356.1 billion against AMD 342.4 billion.
Twenty one banks with their 425 branches operate in Armenia now. ($1 – AMD 384.9).-0—
