UBA head does not find Armenian bank interest rates high

ArmInfo.The banking system in Armenia is highly competitive, and demand for a particular product  is high, its cost cannot decrease. This was stated by Daniel Azatyan, the Chairman of the Union of Banks of Armenia (UBA), during a conversation with journalists on the sidelines of the first International BANKING FORUM-2024, answering a question regarding interest rates.

He disagreed with the journalists' comments about Armenian banks  having high interest rates on loans. In this regard, he noted: "If we  compare with other countries, I would not say that our rates are  high." Azatyan noted that over the past 2-3 years, rates have  increased slightly, but  there is now a downward trend. "But these  levels are still competitive," the head of the UBA emphasized.  Speaking about the loan portfolio, he noted that the results of the  third quarter have not been finalized up, and shared his impressions  of the growth observed in all areas. Azatyan also pointed out that  the main growth is coming from consumer loans and mortgages, while  stressing that the industrial sector and other areas require  new  resources.

The head of the SBA also noted that over the past 3 years, the  percentage of non-performing loans has decreased to 1-2%.  To note  that according to the RA Statistical Committee, interest rates on  dram loans in Armenia in September 2024 amount to 13.68%, compared to  12.73% for the same period in 2023.