Tue, 10 June
24.1 C
Yerevan
USD: 384.44 RUB: 4.83 EUR: 434.11 GEL: 140.51 GBP: 515.15

Equalizing volumes of deposits and lending carries risk for Armenian economy

YEREVAN, February 13. /ARKA/. The volume of deposits at Armenian commercial banks is almost comparable with their overall lending, which carries some risks for the economy, economist Vilen Khachatryan told a news conference last Friday.

To substantiate he said the volume of total deposits at the end of 2016 stood at 2.413.3 trillion drams, while the banks’ overall lending was worth 2.436 trillion drams. The resulting margin was only 23 billion drams, down from 400 billion margin in previous years.

“Roughly speaking, if the volume of deposits grows more rapidly than the lending, the interests on the loans will not be sufficient for returning the deposits and the interests on them. This is quite risky as our economy appears unable to absorb such volumes of money (deposits), “- he said. He added also that an active refinancing process also carries great risks for the economy.

Such a situation, according to the economist, was created by the current economic situation in Armenia. In particular, the low economic activity and solvency of the population limit the ability of the banking system’s lending into the economy, while businesses and people are conservative trying to keep their savings in deposits. According to Armstat, the economic activity of the population in 2016 was 0.5%. –0-

spot_img

POPULAR

Euro and ruble exchange rates to the Armenian dram fell, the dollar rose

The average market exchange rate of the US dollar to the Armenian dram, formed on the Armenian currency market as of June 6, 2025, increased by 0.06 points compared to June 5 and amounted to 383.46 drams.

Average settlement exchange rate of dram to dollar in May was 0.3% lower than a year ago

In May 2025, the average settlement exchange rate of the Armenian dram to the US dollar was 386.6 drams, which is 0.3% lower than the same indicator in May 2024 (387.8 drams).

Mechanism to stimulate cashless payments to be developed in Armenia

On Friday, the Armenian government held a meeting on issues related to stimulating cashless payments in the country.

Acba Bank and NABU launch free 2025 program for organic agriculture development

Acba Bank and the Armenian branch of the German "Nature and Biodiversity Conservation Union" (NABU) are launching a free 2025 Organic Agriculture Development Program, the bank's press service reported.

Dollar and euro exchange rates to the Armenian dram fell again, while the ruble rose

The average market exchange rate of the US dollar to the Armenian dram, formed on the Armenian currency market as of June 4, 2025, fell again by 0.1 points compared to June 3 and amounted to 383.76 drams.

LATEST NEWS

spot_imgspot_imgspot_img