Tuesday, February 8 2011 12:00
Central Bank of Armenia forecasts growth of credit rates in 2011
ArmInfo. In 2011 provision of crediting of the Armenian banking system will be growing more slowly, Head of the Monetary Policy Department of the Central Bank of Armenia (CBA) Artur Stepanyan said at today's press conference.
He recalled that in 2010 the credit portfolio of the Armenian banking system increased by 210 bln AMD as compared with 2009, the major part of the credits fell on the real sector of economy – on industry, which, in its turn, allowed increasing growth rates of industry in GDP.
The CBA representative also pointed out that at the moment one can observe low level of interest rates for almost all types of credits in the financial market. Stepanyan thinks that the long-lasting toughening of the monetary policy in 2011 will lead to some reduction of crediting, which will cause growth in rates. However, these actions will allow increasing the gross demand in the market and, as a consequence, dampening the additional inflationary pressure.
According to the National Statistical Service of Armenia, provision of crediting of the Armenian commercial banks grew by 26% and totaled 941.5 bln AMD ($2.6 bln) by 1 Jan 2011. Over December 2010 the Armenian banks' provision of crediting increased by 4.5%. In the credit portfolio of the commercial banks (roll over and overdue credits exclusive), the share of AMD loans made up by 43% or 383.4 bln AMD, and the share of foreign exchange loans made up 57% or 508.4 bln AMD.
In 2010 provision of AMD loans rose by 8.6% (4.4% growth over December 2010), and foreign exchange loans - by 36,8% (4.8% growth over December 2010).
The interest rates for AMD loans of Armenian commercial banks dropped 19.52% to 18.9% over December 2010 (0.1% annual decline).
Expert: Electricity tariff containment in Armenia is only temporary
Political Scientist: Armenia`s withdrawal from Eurasian Economic Union (EAEU) to result in its dependence on Azerbaijani and Turkish markets
Artur Avetisyan: All discussions regarding the choice of a future NPP model will remain mere talk until there is a vision for strategic development
ATI.SU: Demand for international cargo transportation 30% up in Armenia
Civil Contract nominates Armen Ktoyan for Central Bank Board Member position
Armenia, France considering prospects for expanding technological cooperation