YEREVAN, November 8. /ARKA/. The share of problem loans in Armenia has been decreasing over the last 2-3 years, said Daniel Azatyan, Chairman of the Union of Banks of Armenia (UBA).
‘’Previously, the share of problem loans (in the total portfolio – ed.) was 5-6%, but now it is 1-2%,” he said earlier at the banking forum “Regional Challenges and Opportunities in the Framework of Cooperation with European Banks’’.
Answering the question of why interest rates on loans are not decreasing despite high demand, Azatyan said that the Armenian banking system is quite competitive, and if demand for a product is high, its price should not fall.
“I am sure that competition correctly regulates interest rates, and compared to many countries, I cannot say that the rates are high. However, I understand that over the last 2-3 years they’ve risen slightly, but now they are trending downwards. Nevertheless, these are competitive prices,” he explained.
Noting that the results of the quarter have not yet been finalized, the head of the UBA said that, according to preliminary data, lending is increasing evenly across all sectors.
According to the UBA, the loan portfolio of Armenia’s banking system totals $14.9 billion. -0-
