YEREVAN, May 18. /ARKA/. Armenian commercial banks’ lending in drams to residents shrank 4.5% in March 2015 to AMD 682 billion and loans in foreign currencies contacted by 3.1% to AMD 1 333.2 billion, the Central Bank of Armenia.
The aggregate loans extended buy the Armenian commercial banks to residents reduced 3.6% to AMD 2 015.2 billion.
This is the third consecutive month the banks’ lending declines – in January 2015, compared with December 2014, the lending reduced 1.9%, in February it shrank 2.5% and in March 3.6%.
The lending decline happened amid devaluation of the dram in December 2014, which was triggered mostly by the central bank’s decision to increase obligatory reservation norms.
Some Armenian banks cut their lending in January 2015 because of liquidity shortage and extended loans only to their clients, and other banks tightened lending terms.
According to the regulator’s report, the loans extended to entrepreneurs have shrunk 5.3% since the beginning of this year to AMD 1 117.9 billion in March and lending to households has reduced 1.9% to AMD 796.7 billion.
The aggregate loans extended by Armenia’s commercial banks totaled AMD 2 093.2 billion in late March (4.3% decline). ($1 – AMD 482.90). –0–
