Overdue loans in Armenian banks decreased by 25.8% per annum by July 2017

ArmInfo. The volume of overdue  loans in Armenian banks as of July 1, 2017 was 34.4 billion ($ 71.5  million), having decreased by 25.8% year-on-year. In parallel with  what the volume of prolonged loans, declining for the year by 2.2%,  amounted to July of this year 116.3 billion drams ($ 242 million).  For the II quarter, overdue loans increased by 2.2%, while extended,  on the contrary, decreased by 0.7%.

The proportion of prolonged and overdue loans by July 2017 was 4.70%  (against 5.48% a year earlier and 4.83% a quarter earlier) and 1.39%  (against 2.14% a year earlier and 1.39% a quarter earlier).

In the portfolio of overdue loans, 52% accounted for long-term loans,  and the remaining 48% - for short- term loans, the absolute value of  which amounted to 60.4 billion and 55.8 billion drams, respectively.

In prolonged credits, the lion's share also falls on the long-term -  57.6% or 19.8 billion, while the short-term share made up 42.64% or  14.6 billion.

According to the Central Bank of Armenia, the total volume of bank  lending increased by July 2017. At 13.9% per annum, amounting to  2.473 trillion ($ 5.1 billion), having increased only in the II  quarter by 2.1%. Without taking into account the prolonged and  overdue loans, the credit investments of the Armenian banking system  amounted to 2.322 trillion. ($ 4.8 bn), having increased by 15.8% on  an annual basis, and only 2.2% in the second quarter. (The calculated  exchange rate of the AMD to the USD as of 30.06.17 - 480.47  AMD/USD1.)