ARMENIA’S BANKING SYSTEM FACE EXCESS LIQUIDITY

PanARMENIAN.Net
25.08.2009 16:28 GMT+04:00

/PanARMENIAN.Net/ The Armenian banking system faces excess liquidity,
Emil Soghomonyan , the chairman of the Union of Banks of Armenia told
a press conference on Tuesday According to him, for the moment the
Armenian banks have 5-6% of "idle" loans. "This rate is very high
for Armenia, because we have a small country and, consequently,
a small market," he said.

Emil Soghomonyan also noted that the banking system of Armenia has
had very small amount of non-performing loans, and in 2008 that level
did not exceed 1 per cent. "Even if the economy of Armenia is to face
the second phase of the crisis, it will not shake the foundations of
the banking system," Soghomonyan concluded.