YERERVAN, June 3. /ARKA/. Armenian banks’ aggregate loan portfolio amounts to AMD 1.7 trillion, Andranik Grigoryan, chief of the Armenian central bank’s division in charge of stability and development of financial system, said Monday at a news conference.

He said agricultural loans make up 7% of this amount and total about AMD 115 billion.
Grigoryan said that the hailstorms in two or three provinces in May will have no significant impacts on financial stability of the banking system.

He said that the share of nonperforming loans extended to farmers was only 5% in 2012.
“And this is quite a low indicator for this sector, since agriculture is considered a risky area, and banks run risks when lend money to farmers,” he said.

On May 12, hailstorms inflicted significant damage to 17,000 hectares of crop land in Armenia.
On May 23, the Armenian government approved a program implying support for damaged farms and compensations. Hail-stricken farm owners will enjoy land tax preferences. They may also enjoy adjournments in payment of their bills for irrigation water. New anti-hail cannons will be deployed under the program as well.

Grigoryan said that commercial banks display individual approaches toward the owners of hail-stricken farms to revise lending terms.

“The central bank has discussed the matter with commercial banks which have lent money to farmers,” he said. “They are talking to each client personally to revise lending terms in favour of villagers. Those banks whose loan portfolios are big have even decided to write off certain portions of the loans.”

Grigoryan said that a hot line has been opened for farmers –those farmers having problems may call to the central bank. ---0----