Sat, 15 February
0.1 C
Yerevan
USD: 396.51 RUB: 4.36 EUR: 414.95 GEL: 140.05 GBP: 498.65
spot_img

Credit dollarization in Armenia declines to 51 percent

YEREVAN, February 14. /ARKA/. With a faster-growing dram-denominated loan portfolio, credit dollarization in Armenia declined to 51 percent at end of 2019 from 56 percent in 2018, the historically lowest level, although, overall it is still high, the chairman of the Union of Banks of Armenia Mher Abrahamyan told reporters on Friday.

“Moreover, the share of USD in the total portfolio of the banks’ liabilities and the dynamics show a downward trend,” he said.

Abrahamyan said dollarization is normal for such small countries as Armenia, and its level depends largely on both macroeconomic stability and public confidence in the national currency and also on their expectations from the economy.

According to Abrahamyan, over the past 10-15 years, the level of dollarization in the country has been gradually moving downward, backed by the government’s policies. In his words, high level of dollarization creates difficulties for banks due to currency risks.

For his part, the executive director of the Union of Banks of Armenia Seyran Sargsyan noted that by the end of 2019, the shares of loans in drams and dollars were almost equal. According to him, a similar situation was observed in 2009, when loans in dollars accounted for 51% of the total lending, and 48% were in drams.

“This suggests that the struggle against dollarization is yielding results,” Sargsyan said. As for deposits, he said 57% of the population still prefers to keep their savings in foreign currency and only 42% in Armenian drams.

“Banks, despite raising funds in dollars, actively lend in drams taking currency risks,” Sargsyan said. -0-

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

III Capital Markets Armenia to Be Held in Yerevan

On March 20, the annual III Capital Markets Armenia conference—one of the key events for the financial and investment community in the region—will take place at the Marriott Hotel, Yerevan.

Viva Armenia Issues its First Bonds Worth $80 Million

Viva Armenia CJSC announces the issuance of nominal, coupon paying bonds. The company has issued dollar-denominated bonds with a total face value of $80 million. The underwriter for these bonds is Ameriabank.

Euro jumps 2.28 points to AMD 411.39

The average market exchange rate of the U.S. dollar to the Armenian dram on February 12, 2025, totalled 396.56 drams, having risen by 0.02 points compared to February 11.

‘Bad’ loan assistance program launched in Armenia: 1000 applications already submitted

A scheme designed by the Armenian government to support citizens with bad loans started  on February 1 with 1000 beneficiaries having already submitted online applications,  Deputy Minister of Labor and Social Affairs David Khachatryan said today.

LATEST NEWS

spot_imgspot_imgspot_img