TOTAL AMOUNT OF LOANS PROVIDED BY ARMENIAN BANKS GROWS BY 9.6% IN SECOND QUARTER

YEREVAN, AUGUST 2, NOYAN TAPAN. The total amount of loans provided
by the Armenian banks to residents in the second quarter of 2006
made 220.8 bln drams (about 525.7 mln USD), exceeding the previous
quarter’s index by 9.6%.

Consumer loans accounted for the largest share of the loans
provided – 26.6%, loans to trade and industry made 21.3% and 19.4%
respectively. The smallest amount of loans was given to transport and
communication – 2.2%. As of late June, the overall balance capital of
the commercial banks amounted to 102 bln 335 mln drams (about 242.8 mln
USD), exceeding the previous quarter’s index by 3.1%. The main reserve
of the banks grew by 18.1% on the previous quarter and made 7 bln 620
mln drams. In the structure of resources attracted by the commercial
banks, as of late June 2006, the time deposits of natural persons
declined by 4.3% compared with the index of the first quarter. In the
period under review, the time deposits of legal entities declined by
15.9% on the previous quarter. By risk categories, standard loans
accounted for the largest share of the commercial banks’ loans and
accounts receivable – 97.5%, there were no bad loans. According to
the quarterly report of the Central Bank of Armenia (CBA), there were
no banks that violated the minimum amount of the overall capital in
the second quarter of this year, as well as the minimum amount of
their mandatory reserves in the CBA. To recap, 21 commercial banks
with 282 branches are currently operating in Armenia.