INACTIVE LOANS COMPRISE 7.8% OF ARMENIAN BANKS’ Q1 PORTFOLIO

ARKA
June 23, 2009

YEREVAN, June 23. /ARKA/. Inactive loans comprised 7.8% of the Armenian
banks’ Q1 credit portfolio, Tigran Jrbashyan, Ameriabank’s director
for development, said on Tuesday.

As of March 31, 2009, the local banks’ loan portfolio totaled
668.6bln drams.

Citing the past experience of Japan, Indonesia and Russia, the expert
said banks face major problems when inactive loans comprise 15%-20%
of a country’s total loan portfolio.

"It shows we possess considerable reserves and an ‘airbag’, but we
must always give a right assessment to the situation," Jrbashyan said,
urging the banks to work out new programs to be able to weather a
stronger economic storm.

He said the picture will become more realistic after a summary of Q2
banking activities. ($1-362.18 drams).