YEREVAN, May 26. /ARKA/. Armenian banks started extending fewer consumer loans and currently focus on business lending, the chairman of the Central Bank of Armenia (CBA) Artur Javadyan said at the 2014 budget execution hearings in the parliament on Monday.
Business lending to industry, agriculture, transport, communication and trade sector grew in 2014, whereas consumer loans declined by the end of the year, he said.
Loans to individuals account for higher share than loans to businesses, the head of the central bank said. At the same time, SME loans accounted for more than 25% of all loans from commercial banks and continue growing, he said.
Banks turned to businesses, as they were left with fewer opportunities to give consumer loans in drams due to fund restrictions and the legislative ban on consumer credits in foreign currency, Javadyan said.
Volume of dollar deposits exceeds 72%, which means there is only 28% opportunity of lending in drams left, Javadyan said.
According to the central bank, total loans extended by Armenian banks to residents fell by 3.6% from the beginning of the year to 2,015.2 billion drams in March 2015.
Loans to businessmen dropped by 5.3% to 1,111.9 billion drams in March. Lending to households declined by 1.9% in the period to 796.7 billion drams. ($1 – 478.32 drams). –0–
