ARMENIAN BANKING SYSTEM SECURED ON CAPITAL, ABLE TO WITHSTAND CRISIS – IMF

/ARKA/
May 11, 2009
YEREVAN

The banking system of Armenia is well supplied with capital and is
able to with stand the crisis, said IMF Mission Chief for Armenia
Mark Lewis at presentation of a report "Economic Perspectives of the
Region: Caucasus and Central Asia".

He noted the world crisis mainly had impact on the non-financial
sector of Armenia, specifically on the real sector of economy and
had little impact on the financial sector.

Lewis stated the influence of the first wave of crisis on the
financial sector of Armenia was little as the involvement of the
country’s banking system in the world financial and credit markets
was rather insignificant.

At the same time he stated the banking system of Armenia is well
supplied with capital even by world standards and is able to withstand
world crises.

The expert stressed it would be naïve to think the financial system
of Armenia will be untouched amid the crisis as it has an impact on
the quality of the credit portfolio in all countries.

In her turn, IMF Deputy Director for East Europe and Central Asia
Ratna Sahay stated the Central Bank and Government of Armenia carry
out a very discreet policy, thanks to which Armenian banks do not
have to borrow from foreign banks which is the main reason for crisis
development in a number of countries.

Currently 22 banks and 391 branches operate in Armenia.

According to the preliminary data of ARKA News Agency, on March 31,
2009, the aggregate assets of Armenian banks exceeded 1,141.5bln AMD,
with total capital being 243.8bln AMD and liabilities 897.7bln AMD.

According to the Central Bank of Armenia aggregate credits issued
by Armenian banks to residents amounted 642.8bln AMD, increasing by
19.9bln AMD or 3.1% during the first quarter. At the same time credit
investments and notes payable increased by 18.8bln AMD or 2.6% up to
750.3bln AMD. ($1 – 372.47AMD).