Central bank: growth of Armenian banking system’s credit portfolio 14% in 2009
24.06.2010,
03:09
Lending in Armenia has grown 14% over 2009, Vahe Vardanyan, chief of Armenian Central Bank’s division financial policy and financial stability, said Wednesday at a news conference.
YEREVAN, June 23. /ARKA/. Lending in Armenia has grown 14% over 2009, Vahe Vardanyan, chief of Armenian Central Bank’s division financial policy and financial stability, said Wednesday at a news conference.
“This growth was mainly due to Armenian central bank and government’s joint programs implemented in the beginning of the second half of that year.”
Vardanyan said that the first half of 2009 was the most problematic period for Armenia’s banking system.
That period was marked by a one-percent decline in crediting.
As a whole, the structure of the banking system’s credit portfolio underwent then substantial changes.
“Until the end of 2008, the credit portfolio had been growing thanks to the growth of consumer, trade and mortgage loans, while in 2009, considerable growth was seen in lending for industry sector,” Vardnayan said.
Instead, banks cut consumer lending.
“Consumer loans shrank 22% or by AMD 38 billion in 2009,” the representative of the central bank said. However, as he said, the money lent to the industry sector has produced a favorable effect – it created appropriate demand in the economy and fueled positive trends spurring economic growth in 2010.
The Central Bank of Armenia says the lending of the economy grew 78% in 2007, 51% in 2008 and is expected to grow 20-25% or by AMD 120-130 billion this year. ($1 = AMD 370.59).-0--
“This growth was mainly due to Armenian central bank and government’s joint programs implemented in the beginning of the second half of that year.”
Vardanyan said that the first half of 2009 was the most problematic period for Armenia’s banking system.
That period was marked by a one-percent decline in crediting.
As a whole, the structure of the banking system’s credit portfolio underwent then substantial changes.
“Until the end of 2008, the credit portfolio had been growing thanks to the growth of consumer, trade and mortgage loans, while in 2009, considerable growth was seen in lending for industry sector,” Vardnayan said.
Instead, banks cut consumer lending.
“Consumer loans shrank 22% or by AMD 38 billion in 2009,” the representative of the central bank said. However, as he said, the money lent to the industry sector has produced a favorable effect – it created appropriate demand in the economy and fueled positive trends spurring economic growth in 2010.
The Central Bank of Armenia says the lending of the economy grew 78% in 2007, 51% in 2008 and is expected to grow 20-25% or by AMD 120-130 billion this year. ($1 = AMD 370.59).-0--
