YEREVAN, February 19. /ARKA/. Armenian commercial banks’ aggregate loan portfolio amounted to AMD 2 119.5 billion in late December 2015 showing a 3.1% year-on-year decline, the Central Bank of Armenia reports on its official website.

This is the first decline in the last 15 years. The last decrease was recorded in 2001. Banks’ loan portfolio then shrank 17.6%.

The lending contraction was mostly due to economic things in the country, particularly to decrease in money transfers, which weakened the population’s ability to pay, and to decline in foreign trade, which affected business activities.

Besides, shocks caused by devaluation of the dram, which was not neutralized yet in the beginning of 2015, made banks cautious in extending loans. Some banks even ceased lending money in January 2015.

According to the regulator, Armenian banks’ lending to residents shrank 4.1% to AMD 2 005.2 billion, and loans in drams here dropped 4.7% (AMD 680.9 billion) and loans in foreign currencies 3.79% (AMD 1 324.3 billion).

Lending to companies fell 4.6% to AMD 1 126 billion and to households 3.9% to AMD 779.9 billion.

Twenty one commercial banks operate in Armenia now. ($1- AMD 495.88). --0-----