Monday, January 30 2012 18:52
Crisis of Eurozone may reduce lending in Armenia by 10%
ArmInfo. Possible recession in the Eurozone may reduce lending in Armenia by approximately 10%, Director for Development of Ameriabank Tigran Jrbashyan said at a press conference when replying to ArmInfo correspondent's question.
Nevertheless, the expert pointed out that this is one of the several scenarios of development of the Armenian credit market and at the same time the most negative and low probable one. Two more realistic scenarios promise positive concourse of circumstances in this market and imply maintenance of lending volumes at the level of the previous year in the first case, and some reduction of lending growth rates in the second case.
"Both foreign and domestic political and economic events also influence the lending volumes", the expert said meaning the upcoming election and the post-election processes by the domestic factors and the problems of Eurozone by the foreign factors.
Jrbashyan specified that now the banking system experiences some reduction in liquidity. In addition, several difficulties have arisen due to attraction of foreign capital; in particular, the foreign creditors' terms for the local borrowers have been toughened.
When speaking of the state and the future of Russian economy amid the global trends, Jrbashyan said that like many other countries, Russia will respond to the changes of economic conjuncture in the Eurozone, particularly, to the changes of oil and metal prices. Russia will also face reduction of sales markets due to the problems in Europe, the expert said and added that Russia's problems cannot help influencing the Armenian economy. Furthermore, Europe itself is a trade partner of Armenia.
According to the foreign mass media, the international rating agency Standard&Poor's expects the economy of Eurozone to find itself in recession in Q1 2012. In the second half of 2012 the Eurozone will again enter the phase of economic growth. At the same time, the agency does not rule out a worse option for the Eurozone, when the recession may turn out to be deep. According to Standard & Poor's, the chances for such developments make up 40%.
Active consumer lending causes double-digit growth in bad loans 
Luys Foundation: Armenian government continues to face challenges in budget planning
Armenia`s brandy and winemaking industry in crisis - economist 
Even at embryonic stage, powerful impetus given to economic activity in energy sector - ENA acting manager 
Armenian NA OKs ENA nationalization 
China preparing to open new chapter of One Belt, One Road initiative with involvement of Armenia - diplomat 
The Merger between "Ardshinbank" CJSC and "Ardshininvestbank" CJSC Has Been Completed
Ticket packets 1.2% of total number of transport tickets in Yerevan