OVERDUE CREDITS IN ARMENIAN COMMERCIAL BANKS PORTFOLIOS DROP TO 5%

ARKA
May 13, 2010
YEREVAN

YEREVAN, May 13, /ARKA/. The share of overdue credits in Armenian
commercial banks’ portfolios in the first quarter of 2010 dropped to
5%, down on 8%-10% late last year, Ararat Ghukasian, chairman of the
Union of Armenian Banks, said to a news conference today.

He said the volume of extended credits in the first three months of
the year rose by 7.42% from the beginning of the year or by 54 billion
Drams to 777 billion Drams. Compared to the first quarter of 2009 their
volume rose by 19.14%. Overall, some 150,000 credits were extended in
the first quarter of the year, the bulk of which were consumer credits.

According to figures, unveiled by Ghukasian, the banks earned a
total of 6. 8 billion Drams in profits in Q1, well up from the first
quarter of last year. Higher earnings were responsible for a total of
4.4 billion Drams of different taxes paid by the banks in the first
quarter, Ararat Ghukasian said.

Overall, the first quarter, was positive, Ghukasian said, citing
also a 5.36% rise in the volume of banks’ assets or 72 billion Drams,
which rose to 1.4 trillion Drams. The figure represents a 14% growth
if compared to the first quarter of 2009. According to him, the banks’
total capital grew by 3% from the beginning of the year.

On March 31 there were 31 commercial banks in Armenia with
389 branches. Their total capital stood at 295.2 billion Drams,
liabilities at 1.122 trillion Drams, and their aggregate credit
investments totaled 783.4 billion Drams. ($1- 389.47 Drams).