Actual share of nonperforming loans in Armenia’s economy far larger than official figure

YEREVAN, November 12. /ARKA/. The share of problematic and nonperforming loans in Armenia’s economy is 8%, according to official statistical reports, but actually it is far larger, and this carries major risks, Manuk Yerghnyan, the head of the Economy and Values Armenian Research Center said in an exclusive interview with ARKA News Agency.

In his words, loan debts in the national economy grew 27% recently.
The economist said that many companies started financing each other, increasing repayment terms, as they had no available and cheap financial resources, and this indicates particular problems.

He said Armenian banks sustained unprecedented losses, about AMD 54 billion, this year as the central bank tightened its monetary policy and some risks emerged in economic environment.
The National Statistical Service of Armenia says overdue loans reached AMD 44.37 billion in late September after growing 3.7% over one month. Loans with prolonged terms grew as well – 1.8% to AMD 123.4 billion.

Credit investments shrank 1.4% to AMD 1 865.6 billion. ($1- AMD 482.65). —-0—-

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