ArmInfo. The rate of the foreign currency loans in the total assets of Armenia's banking system increased from 40.8% to 41.3% during the last three years, while the rate of the national currency (AMD) loans decreased from 22.3% to 15.7%. In absolute terms, the AMD loans increased by 3.8%, while foreign currency ones increased by 50%.
According to data of ArmRating
Agency, the foreign currency component in the bank assets in the country increased drastically in 2013-2014 - 19%-24%. In 2015, this indicator increased by some 5%, while the AMD component has showed downward trend since 2014 after 22% growth in 2013. The AMD component rate has slumped to negative 1.2% due to loans that stagnated in 2015 (negative 4%). The foreign currency loans stagnated in 2015 too (0.6%).
The annual growth rates of the summary assets of the Armenian banks slackened in 2012- 2015 - from 22.7% to 4.7%, as lending rates shrank from 21.5% to 1.7%. According to the agency, in 2015, there was negative dynamics of corporate loans issued to the following sectors: industry (-8.2%), trade (-1.4%), and construction (-9.6%). This affected the upward trend of the agricultural sector (to 18.3%) and public catering and service sector (to 10.6%). The growth rate of the retail lending that has the largest share in total loan book (22%) has slackened too, but remains at a positive level so far. The share of industrial loans in total loan book of the Armenian banks is the largest - 18.5%. Then go trade finance - 17.9% and agricultural loans - 7.2%. The service and construction sectors made up 5%-5.3% in total, respectively.
The level of dollarization of the bank assets reached 55.4% at the end of 2015. General obligations were dollarized by 65.2%. General foreign currency liabilities to customers totaled 43.5%.
AmRating analysts explained the tendencies of 2015 with the slackening GDP growth, negative dynamics of the foreign trade turnover, steep decline of imports, 30% decline of foreign transfers that greatly affected the total demand and creditworthiness of the population. Dollarization of the country's economy has increased also due to the devaluation expectations, a sharp revaluation of the AMD rate at the end of 2014 and devaluation of the Russian ruble throughout 2015.
There were 21 operating banks in Armenia in 2015, with 3.5 trillion drams total general assets for Jan 1 2016 and slackening growth from 15.4% to 4.7%. Loans totaled 2.3 trillion drams with the growth slackening from 21.2% to 1.7%. In 2015, net profits in the banking system totaled 18.3 billion drams with a three-year decline by 54%.