AGGREGATE ASSETS OF CREDIT ORGNAIZATIONS IN ARMENIA INCREASE TOT 3.6
BILLION DRAMS

YEREVAN, JULY 28. ARMINFO. Aggregate assets of credit orgnaizations in
Armenia increased by 10% in the second half of 2004 totaling 3.6 bln
drams, the CB’s Press-Service told ARMINFO.

According to the submitted data, the growth of the aggregate assets is
accounted for by a 2,804% increase in the crediting of the employees
of credit organizations and mutually-connected persons (22.5 mln
drams). Besides, demands to banks and other financial orgnaizations
increased by 189%, totaling 74.7 mln drams. Crediting of legal
entities grew by 19.4%, totaling 251.2 mln drams, natural persons by
23.7%, totaling 1.3 bln drams. Other assets increased by 115.1%,
totaling 414.9 mln drams. Leasing and factoring operations decreased
by 17.2%, making up 210.3 mln drams. Investments in state securities
decreased by 48.6%, totaling 149.6 mln drams. Cash decreased by 54.7%,
totaling 69.9 mln drams.

At the same time, in the structure of assets, a 20.8% growth of basic
funds was registered (479.6 mln drams on July 1, 2004), the calculated
interests grew by 46.9% (20.9 mln drams), current accounts in banks by
4.9% (441.6 mln drams).

Provision of crediting grew by 9.9% in the second quarter and reached
2.2 bln drams, which was accounted for by an increase in the volume of
crediting of the agricultural sphere by 4.3%, trade sector by 0.5%,
financial sector by 205.2%, on consumer credits by 17.2% and other
branches by 40.6%, which totaled 312.5 mln drams. 110.8 mln drams,
74.5 mln drams. 862.6 mln drams and 234.5 mln drams, respectively. In
the crediting portfolio, a 10.8% decline was registered in the
crediting of the industrial sector, a 1.1% in the sphere of
construction, 4.2% in sphere of transport and communications, which
totaled 497.0 mln drams. 88.8 mln drams and 2.2 mln drams,
respectively.

The credits and receivables classified on risk groups increased by
4.9% in the second quarter of 2004, totaling 2.9 bln drams. As a
result, on July 1, in the structure of crediting portfolio, “standard”
credits totaled 89.8% or 2.6 bln drams, “controlled” credits – 5.7% or
164.3 mln drams, “nonstandard” credits – 1.7% or 50.3 mln drams and
“doubtful” credits – 2.8% or 81.6 mln drams. In the quarter under
review, some 59.6% and 4% was fixed on “controlled” and “standard”
credits respectively. While, some 9.7% and 0.1% decline was fixed on
“nonstandard” and “doubtful” credits, respectively.

According to data of the CB, by July 1, 2004, 7 credit orgnaizations
and 1 branch operated in the territory of Armenia. At the same time,
Express-Universal, SEF-International and Gladzor are universal credit
orgnaizations, ACBA-Leasing and Agrileasing – leasing orgnaizations,
Arfin – credit union and “First Mortgage Company” – mortgage credit
orgnaization.