Sun, 28 September
11.1 C
Yerevan
USD: 382.71 RUB: 4.59 EUR: 446.43 GEL: 141.38 GBP: 510.80

Agricultural loans total AMD 115 billion in Armenian banks’ AMD 1.7-trillion portfolio

YERERVAN, June 3. /ARKA/. Armenian banks’ aggregate loan portfolio amounts to AMD 1.7 trillion, Andranik Grigoryan, chief of the Armenian central bank’s division in charge of stability and development of financial system, said Monday at a news conference.

He said agricultural loans make up 7% of this amount and total about AMD 115 billion.
Grigoryan said that the hailstorms in two or three provinces in May will have no significant impacts on financial stability of the banking system.

He said that the share of nonperforming loans extended to farmers was only 5% in 2012.
“And this is quite a low indicator for this sector, since agriculture is considered a risky area, and banks run risks when lend money to farmers,” he said.

On May 12, hailstorms inflicted significant damage to 17,000 hectares of crop land in Armenia.
On May 23, the Armenian government approved a program implying support for damaged farms and compensations. Hail-stricken farm owners will enjoy land tax preferences. They may also enjoy adjournments in payment of their bills for irrigation water. New anti-hail cannons will be deployed under the program as well.

Grigoryan said that commercial banks display individual approaches toward the owners of hail-stricken farms to revise lending terms.

“The central bank has discussed the matter with commercial banks which have lent money to farmers,” he said. “They are talking to each client personally to revise lending terms in favour of villagers. Those banks whose loan portfolios are big have even decided to write off certain portions of the loans.”

Grigoryan said that a hot line has been opened for farmers –those farmers having problems may call to the central bank. —0—-

spot_img

POPULAR

“We want the word ‘investor’ in Armenia to mean normality, not elitism” – Freedom Broker Armenia

ARKA news agency spoke with Freedom Broker Armenia Director Ovak Ovakimian about the transformation of investment thinking, company strategy and trust as an economic value.

Ranking of the most profitable banks in Armenia based on results of second quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the second quarter of 2025.

Ranking of Armenia’s most profitable banks in 2024

ARKA news agency has released a ranking of the most profitable commercial banks in Armenia in 2024.

The UAE instead of Europe : why Armenia needs to change its approach to crypto regulation – EXCLUSIVE

The Armenian Forum on Cryptocurrency Assets, organized by the Cilicia Business Club, was recently conducted in Yerevan.

Central Bank of Armenia initiates discussions on draft by-laws related to Law on Cryptoassets

The Central Bank of Armenia is set to conduct a public discussion on  the draft by-laws essential for implementing the Law on Cryptoassets, which became effective on July 4 of this year, as reported by the regulator's press service.

LATEST NEWS

spot_imgspot_imgspot_img