Armenia’s Banking System Shields Country As Crisis Bites, Premier Sa

ARMENIA’S BANKING SYSTEM SHIELDS COUNTRY AS CRISIS BITES, PREMIER SAYS

ARKA
Dec 16, 2008

YEREVAN, December 16. /ARKA/. Armenia’s stability during the global
financial crisis is thanks to the robust banking system, RA Prime
Minister told the Golos Armenii (Voice of Armenia).

The impact force of the crisis depends on a country’s international
balance of payment, as well as trade and financial flows, Sargsyan
said, pointing out 30% adequacy and high liquidity of local banks.

The banks continue their harsh and shrewd policy despite sharp
criticism of the real sector of economy, the premier added.

He emphasized the role of the Central Bank’s policy, saying it is
the only remedy from the crisis.

Twenty-two commercial banks with 367 branches are currently operating
in Armenia. As of September 30, 2008, total assets and capital of
local banks amounted to 954.1bln drams and 214.9bln drams respectively,
with their liabilities totaling 739.2bln drams.

During the same period, crediting of Armenia’s economy reached
617.5bln drams against 434.5bln drams earlier this year, with consumer
credits and mortgage loans amounting to 172.5bln drams and 81bln
drams respectively. ($1-308.55 drams).