YEREVAN, July 12. /ARKA/. The share of non-performing loans in commercial banks of Armenia decreased by 0.4 percentage points in 2016 May from the previous month to 9.8%, the Central Bank said.
The share of non-performing loans began to rise from the second half of 2014, surging in December to 7% from 5-6%. The rise was prompted, in particular, by financial shocks stemming from sharp devaluation of the dram. The trend continued into 2015 as well.
From February to April 2016 the share of non-performing loans in commercial banks reached its maximum over the last 6 years. In April 2016, their share in total loan portfolio reached 10.2%.
According to the National Statistical Service, the overdue loans of Armenian banks increased by 1.7% in 2016 May from April to 47.1 billion drams. The share of short-term overdue loans fell by 7% to 23.6 billion drams, while that of long-term loans increased by 10.9% to 23.5 billion drams.
Credit investments increased by 0.11% in May to 1.988.6 trillion drams. At present, there are 20 banks operating in Armenia. — 0-
