YEREVAN, February 15. /ARKA/. The Central Bank of Armenia said the lending to economy this year by the country’s lending organizations is very likely to slow down.
This projection can be found in Central Bank’s Program of Monetary Policy in the first quarter of 2012. Under the Program, the lending to the economy in 2012 is expected to increase by 20.2% or 270 billion drams, down from 35.3% or 350 billion drams in 2011.
The Central Bank said the bulk of loans will be channeled to finance small and medium businesses. It said also mortgage lending is supposed to see a rise. It said the bulk of lending is expected to be made in foreign currency due to large volume of funds attracted by commercial banks of Armenia from foreign organizations.
The outstanding loan portfolio of commercial banks in December 2011 increased by 2.8% from November to 1.271 trillion drams. ($1 – 388.69 drams). -0-