GROWTH OF CREDIT AND CURRENCY RISKS MAY NEGATIVELY AFFECT QUALITY OF CREDIT PORTFOLIOS OF COMMERCIAL BANKS IN ARMENIA

ArmInfo
2009-03-04 12:06:00

ArmInfo. Growth of credit and currency risks may negatively affect
the quality of credit portfolios of commercial banks in Armenia,
Chairman of Armenian Central Bank Artur Javadyan says in an interview
with ArmInfo.

He says that the level of non-standard credits in all the states
has grown.

However, the situation in Armenia is not so poor and the portfolio
of standard credits is at rather high level, incomparably higher than
the quality of credit portfolios in Russian and even European banks,
Javadyan said. As regards the 61% growth of overdue credits for Jan
2009 to 5.4 billion drams (0.9% of total provision of crediting
by commercial banks in Armenia which was 2.6% down for Jan to
619.1 bln drams), A. Javadyan explained it with the influence of
decreasing import and export, and cutback in local production. It is
inevitable in conditions of the global financial and economic crisis,
CB Chairman said.