ECONOMIC GROWTH RATES IN ARMENIA PROMOTE PUBLIC DEMAND FOR BANK SERVICES, UNIBANK BOARD CHAIRMAN SAYS

ArmInfo
2007-06-04 15:40:00

Demand for banking services is growing simultaneously with the economic
growth in Armenia, Unibank Board Chairman Vardan Atayan believes,
Unibank press-service told ArmInfo.

V. Atayan estimates the country’s mortgage market potential at
$1billion.

The estimate of the association of mortgage market participants is
the same. At the same time, Atayan said the commercial banks fail to
satisfy the demand for lack of enough funds. The share of bank deposits
in Armenia is only 8% of GDP, he said. "It means that an insignificant
part of population savings are at banks. It can be increased through
non-cash purchase and sale of real estate, which, however, requires
legislative support." In this connection, the banks have still much
do, although they are already ahead of the other economy sectors,
Atayan believes.

The analysis of Armenia’s banking system by Agency of Rating Marketing
Information (ArmInfo), Unibank is among top five Armenian commercial
banks due to balance sheet ratio. Thus, on April 1 2007, Unibank assets
totaled 34.8 billion AMD (7th position), provision of crediting –
16.013 billion AMD (6th position), mortgage lending portfolio –
3.7 billion AMD (2nd position), deposits of natural persons – 17.014
billion AMD (2nd position). The aggregate mortgage lending by Armenian
commercial banks totaled about $65 million or 9% of total crediting
at the beginning of 2007. The National Statistical Service of Armenia
reports that the economic growth in Armenia in the first quarter
of 2007 totaled 11.1% as compared to the same period of 2006. At
the end of March 2007, GDP totaled 312 billion AMD ($870 million)
in market prices.