Currency component in Armenian banks` loan portfolio continues to dominate - 62.3%

ArmInfo. In the total loan  portfolio of Armenian banks (excluding prolonged and overdue loans),  the currency component continues to dominate - 62.3% or 1.586  trillion AMD by January 1, 2018, with an annual growth of 8.9%, and  only in the fourth quarter - by 7.6%.  At the same time, the share of  AMD loans is 37.7% or 958.9 billion, with the annual growth of the  absolute value by 16.4%, and quarterly - by 11.9%.

According to the Central Bank;s data, provided to ArmInfo by the  National Statistical Service, the total volume of bank lending  increased by 2018 at 11% per annum, amounting to 2.677 trillion  drams, with growth for the IV quarter by 7.3%. Without taking into  account the prolonged and overdue loans, the credit investments of  the banking system of Armenia increased by 11.6% on an annual basis,  and by 9.2% in the fourth quarter, to 2.545 trillion drams.

The share of extended and overdue loans in 2017 were respectively  3.72% and 1.19% (against 4.14% and 1.32% in 2016, 5.02% and 1.52% in  the third quarter of 2017). In the annual terms, the volume of  overdue loans in Armenian banks decreased by 0.5%, and for the  quarter by 16.1%, making up to 2018 31.8 billion.  The volume of  prolonged loans declined for the year by 0.2%, and for the quarter -  by 20.5%, amounting to 99.6 billion. Moreover, in prolonged loans,  short-term loans dominate, while in long-term overdue dominants.

According to statistics, the average interest rate on AMD loans in  December 2017 was formed at the level of 13.26%, against 15.38% a  year earlier and 12.05% quarter earlier. (The calculated exchange  rate of AMD as of December 31, 2017 was 484.10 AMD/USD1).