EXPERT RULES OUT ECONOMIC SHOCKS IN ARMENIA IN 2009
ARKA
June 24, 2009
YEREVAN, June 24. /ARKA/. No severe downturns are likely to shake
Armenia’s economy this year, said Tigran Jrbashyan, Ameriabank’s
director for development.
"Though Armenia’s banking system is unlikely to feel sever shocks,
I am skeptical about banks posting profits this year. Even if the
banks record a zero profit by end-2009, it will look really good,"
the expert was quoted as saying on Tuesday.
According to Jrbashyan, some of the local banks will have to make
pre-capitalization, attracting additional investments to increase their
capital. Jrbashyan did not rule out possible mergers in Armenia’s
banking system. He refused to say how many mergers were likely to
happen in the sector, adding fewer banks would continue their business
due to pre-capitalization.
Armenia’s banking sector with excess capitalization is likely to need
for additional investments, the expert said.
With Armenian banks actively restructuring indebtedness, Jrbashyan
forecast a dramatic rise in the credit portfolio term. This will
become more obvious by end-2009.
The expert cited local banks with about 15% inactive loans.
According to ARKA News Agency, 22 banks with 386 branches operated in
Armenia on March 31, 2009. As of end-Q1, the country’s assets totaled
1,141.5bln drams, compared to 1,036.3bln drams on December 31, 2008.
($1-362.18 drams).