Head of CBA: lending by Armenian banks doubled in H2

29.12.2009 12:35
Head of CBA: lending by Armenian banks doubled in H2

YEREVAN, December 29. / ARKA /. The volume of lending by the Armenian banks in the second half of the year has doubled and amounted to over six hundred billion drams, the chairman of the Central Bank of Armenia Artur Javadyan said on Monday, summing up the year.

According to him, throughout the year significant steps were carried out to strengthen the financial system by the government.

"With the assistance of the Government of Armenia, commercial banks have carried out an unprecedented lending program to small and medium-sized and large businesses. A striking proof of the catalytic properties of this program is the fact that the resources provided by the banks' loans rose almost twice, even exceeding the equivalent amount in 2008, in the second half of 2009 compared to the first half of it, " Javadyan said.

He noted that in the first half of the year, the banks have provided loans amounting to three hundred billion drams, while in the second half of 2009 the banks managed to give nearly six hundred billion drams of credit funds.

"As a result of the interest rates of lending reduced, ensuring the availability of funds for businesses and contributing to the rapid reconstruction of the real sector," Javadyan said.

According to the head of the Central Bank, similar developments occurred in the context of rising levels of consumer protection and transparency of transactions and agreements.

He said that due to the actions, the Central Bank became a more active market of interbank loans, contributing to an equal redistribution of liquidity in the market and reducing the unwanted volatility.

Amount of granted loans to residents by the Armenian banking system, including deposits, factoring and leasing, stood at about six hundred ninety billion drams at the end of September 2009, having increased by 55.1 billion drams or 8.7% for the third quarter of 2009.

This was reported in the review of the Central Bank of Armenia on the activities of Armenian banks for the third quarter of 2009.

In terms of lending the largest share in total loan portfolio accounted for the lending trade - 20,8%, consumer loans - 19,5%, lending industry - 16,9%, and mortgage loans - 12,1%. –0-

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