Armenian banks’ loan portfolio in absolute numbers surged from 400 billion drams in 2007 to 1.7 trillion drams in 2013

YEREVAN, May 19. / ARKA /. Armenian banks’ loan portfolio in absolute numbers surged from 400 billion drams in 2007 to 1.7 trillion drams in 2013, accoridng to Central Bank chairman Arthur Javadyan, who spoke today at parliament.

He said also that the ratio of bank-owned assets to the GDP has tripled from 2007 to 2013.

“This ratio has increased from 24.4% to 77, while the ratio of loans to GDP has grown from 13% to 43%. In absolute numbers, the loan portfolio of the banking system increased from 400 billion to 1.7 trillion drams, while the deposits grew from 400 billion to 1.5 trillion drams,” he said.

He said the average rate on loans decreased by 4.5 percentage points, while the average rate on deposits increased by 1.2 percentage points.

“Thus, we were able to successfully counter the effects of the global financial crisis. None of our financial institution faced the problem of insolvency and did not need budgetary support,” he said.

Armenian president Serzh Sargsyan has asked the National Assembly to reappoint Arthur Javadyan as chairman of the Central Bank. He is the only nomination for the post. Under the Constitution, chairman of the Central Bank is appointed by the parliament for a six year term. The candidate is nominated by the head of the country. Javadyan was first elected as chairman of the Central Bank in June 2008. ($ 1 – 413.31 drams). -0-

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