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

Dram-pegged stablecoins will significantly reduce cross-border payment costs – Galstyan

Stablecoins pegged to the Armenian dram will allow the population to make domestic payments and significantly reduce cross-border payment costs, stated Martin Galstyan, head of the Central Bank of Armenia, in response to a question from ARKA news agency.

Continuous liquidity and fair pricing must be ensured in the Armenian foreign exchange market — Central Bank

One of the main tasks of the Central Bank of Armenia is to ensure continuous liquidity and fair pricing in the foreign exchange market, stated Martin Galstyan, head of the regulator.

Armenia’s banking system is capitalized significantly above regulatory requirement: Central Bank Governor

Armenia's banking system is adequately capitalized and has sufficient liquidity buffers, stated Central Bank Governor Martin Galstyan.

Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (May 18-24)

Last week, the Armenian financial market focused on bank restructuring mechanisms, the tax model for bank dividends, the regulatory agenda, comments from international financial institutions, and the development of financial literacy.

Head of Central Bank named two main risks for financial stability

There are two main risks for the financial stability of Armenia: one is associated with external factors, the other with internal processes, said the Chairman of the Central Bank Martin Galstyan, presenting the financial stability report for 2025.

LATEST NEWS

spot_imgspot_imgspot_img