Growth of overdue loans slackens from 20.1% to 1.9% in Q2 2016 amid accelerated growth of roll over loans from 3.1% to 4.3%

ArmInfo. As of July 1 2016, the amount of the overdue loans in Armenian banks grew by 13.4% year over year to 46.4 bln AMD ($97.3mln). According to the Armenian Central Bank's data provided to ArmInfo by the National Statistical Service of Armenia, the amount of extended loans totaled 118 .9bln AMD ($249.5mln), with a 0.6% year over year growth. For Q2 2016, the growth of overdue loans slackened from 20.1% to 1.9% and that of extended loans accelerated from 3.1% to 4.3%.

Overdue loans accounted for 2.14% of total loan portfolio of banks for Q2 2016 versus 2.13% in Q1 and 2% a year ago. Extended loans accounted for 5.48% of total versus 5/34% in Q1 and 5.86% a year ago.  The short-tem and long-term loans accounted for 49.7% and 50.3% of total overdue loans, with their absolute value being 23.1 bln AMD and 23.3 bln AMD, respectively. Long-term loans accounted for 87.6bln of total the extended loans, while the rest are short-term loans - 31.3bln drams. The long-term loans grew from 66.7% to 73.7% year over year amid 33.3% decline of the short-term ones to 26.3% of total extended loans.

As of July 1 2016, the lending of the Armenian banking system grew by 6.4% year over year to 2.171 trillion AMD ($4.6bln), 4% for Q1 alone and 1.7% for Q2 alone.  Exclusive of the overdue and extended loans, the loan portfolio of the banks totaled 2.006 trillion AMD ($4.2bln).  Exclusive of the overdue and extended loans, long-term loans accounted for 84.5% of total loan portfolio of banks, while short-term ones account for 15.5% of total (versus 84.8% and 15.2% respectively a year ago).  (As of June 30 2016, the AMD/USD exchange rate was 476.68 AMD/1USD).