Tue, 28 October
13.1 C
Yerevan
USD: 382.78 RUB: 4.78 EUR: 446.44 GEL: 140.95 GBP: 509.98

Share of non-performing agricultural loans grew to 11 percent

YEREVAN, May 30. /ARKA/. The share of non-performing agricultural loans in 2015 stood at 11%, according to Andranik Grigoryan, the head of Stability and Financial Development unit of the Central Bank of Armenia.

“Non-performing loans in agricultural sector have historically been higher than in other sectors amounting to 11% in 2015. Overall, non-performing loans exceeded 7%,’ he said to ARKA.

He said the ongoing government policy of subsidizing agricultural lending has a positive impact on the repayment of loans. Grigoryan said also that the rise in non-performing loans resulted from negative external factors and the ongoing slowdown in GDP growth.

“The negative impact of external factors such as the slowdown in Armenia’s major partner countries, the downward trend in world prices for non-ferrous metals and the falling remittances from abroad to Armenia have led to a decline in the demand for loans  as well as to a decrease in the level of loan
repayment,” he said.

According to the Central Bank’s “Financial Stability Report 2015’, the share of non-performing loans in 2015 increased by 1 percentage point to 7.4%. As of March 2016, non-performing loans stood at 10%. In agriculture, their share grew by 5.9 percentage points to 11.3%, in public and service sector their share grew by 4.3% to 13.8% and in industry they upped by 3.2 percentage points to 9.2%. -0-

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Moody’s upgrades Converse Bank’s ratings

Moody's Ratings has upgraded Converse Bank CJSC's long-term local and foreign currency bank deposit ratings to Ba3 from B1, aligning the Bank’s rating with Armenia’s sovereign rating.

“We want the word ‘investor’ in Armenia to mean normality, not elitism” – Freedom Broker Armenia

ARKA news agency spoke with Freedom Broker Armenia Director Ovak Ovakimian about the transformation of investment thinking, company strategy and trust as an economic value.

The UAE instead of Europe : why Armenia needs to change its approach to crypto regulation – EXCLUSIVE

The Armenian Forum on Cryptocurrency Assets, organized by the Cilicia Business Club, was recently conducted in Yerevan.

Ranking of the most profitable banks in Armenia based on results of second quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the second quarter of 2025.

LATEST NEWS

spot_imgspot_imgspot_img