ARMENIA POSTS 2% MONTHLY DROP IN LOANS FROM JAN 09

ARKA
May 7, 2009

YEREVAN, May 7. /ARKA/. Armenia posted up to 2% monthly drop in total
loans starting form January 2009, Chairman of Economy and Values
Research Centre Manuk Yergnyan said Wednesday at Novosti International
Press Centre in Yerevan.

He pointed out a twofold rise in overdue loans in February 2009
against December 2008. "Overdue bank loans started to increase in
March 2008, with the process slowing down in November and December,"
the economist said, citing the decision of the local banks to refinance
overdue loans.

Around 95% of overdue credits were short-term loans, Yergnyan added.

"Overdue long-term-loans increased slightly in March 2009," the
expert concluded.

According to the Central Bank’s quarterly review of local commercial
banks, loans to residents (including factoring, deposits and leasing)
reached 642.8bln drams in end-March 1 19.9bln drams (3.1%) quarterly
increase.

Carried out by Economy and Values Research Center with the assistance
of EV Consulting, the Situational Assessment of the Global Crisis
Impact on Armenia’s Economy research aims at giving the real picture
of the country’s economic situation.

In the past two months, the research centre polled 1,000 local
households and 60 small-to-medium-sized enterprises. ($1 – 372.79
drams).