ArmInfo. In Armenia, the absorptive capacity of the economy has increased. Referring to the assessment of bank credit specialists, on May 3, during a press conference, Head of the Central Bank of the Republic of Armenia Martin Galstyan stated. He explained that Armenian banks, judging by the easing of lending conditions in the fourth quarter, somewhat increased their appetite for risk, and this, in turn, suggests an acceleration in lending growth in subsequent quarters.
Galstyan noted that, according to the assessments of credit specialists and the management of banks in Armenia, a situation has arisen where, unlike in previous periods, it has become possible to provide more risky loans, in other words, the absorption capacity of the economy has increased. "Banks have liquid funds that can be used for lending. Moreover, from the beginning of 2022 to this day, the monthly growth of the loan portfolio has already been recorded by almost 1% for both business loans and consumer loans, and for agricultural loans - by 3.34% in January-March. The highest growth was recorded in mortgage loans, as in the previous year," Galstyan said.
Referring to the past year 2021, Galstyan stressed that, having successfully overcome the negative impact of the shocks of 2020, growth in lending to all areas was recorded in the banking system of Armenia since the second half of 2021. In particular, according to him, the financial cycle index, which reflects the dynamics of financial market growth and lending activity, has entered a phase of recovery growth since the second half of the year. This, as Galstyan noted, was significantly affected by the development in the mortgage lending market, the growth of which reached 36% by the end of the year.
, he said. Referring to the reduction in business lending (by 5%), the head of the Central Bank stressed that due to the economic situation, there was a weak demand for credit products from customers. The decrease in the volume of the corporate portfolio was also reflected in the tightening of requirements on the part of banks.
