YEREVAN, October 8. /ARKA/. The Armenian dram remains stable, and the financial sector displays a high level of capital liquidity, according to the World Bank’s report on the regional economic development of Europe and Central Asia, published on Wednesday.
The WB analysts say after a 5.5% devaluation in March, the Armenian dram recovered in April after the first COVID-19 strike, and remained largely stable since then.
They say the financial sector has entered a pandemic with a high level of capital liquidity. As a result, banks were able to freeze interest on loans while continuing to provide loans.
They also say in their report that as of the end of July, 2020, lending increased by 17% compared to the same period a year earlier. The increase in deposits, which amounted to 11%, compared to the same period a year before, is still sufficient.
Despite the decline, 50% of the loan portfolio and 53% of deposits are still denominated in foreign currencies.
Chairman of the Central Bank of Armenia Martin Galstyan said earlier that the liquidity of the Armenian banks significantly exceeds the regulatory requirements of the central bank. The capital adequacy ratio is 12% as in the banking system at the moment it reaches 17.2% (excluding the risks that have accumulated as a result of the three-month “credit holidays”). The absolute capital indicator is about 900 billion drams. As for the ratio of liquid funds to assets, now it is at the level of 26.6%, while the norm is 15%.
There are 17 commercial banks in Armenia now. ($ 1 – AMD 488.59). -0-
