YEREVAN, May 8. /ARKA/. Total loan investments by Armenia-based commercial banks dropped by 5% to 1,893.7 billion drams in March as compared to the beginning of the year, while overdue loans increased by 14.2%, the National Statistical Service (NSS) reported.
According to the NSS, dram loans declined by 5.1% to 632.1 billion drams, and foreign currency loans fell by 5% to 1,261.6 billion drams.
Lending dropped over the reporting period against the background of dram devaluation in December 2014, mainly due to some toughened requirements by the central bank, and increased reserve norm in particular. Due to lack of liquidity some Armenian banks restricted the lending and started providing loans only to their clients, in January 2015 in particular; some other banks have simply applied stricter lending rules.
At the same time, in March 2015, overdue loans rose by 14.2% to 37.13 billion drams from the beginning of the year. Of it, about 25 billion drams were short-term loans.
According to the statistics, the extended loans rose by 6% to 130.8 billion drams in the reporting period.
As of the end of March this year, loans provided by Armenian banks amounted to a total of 2,061.7 billion drams. ($1 – 480.96 drams). -0-
