CBA: pace of growth in volumes of lending to reduce in Armenia in 2011

PanARMENIAN.Net - Head of the Monetary Policy Department at the Central Bank of Armenia (CBA) Arthur Stepanyan said that the total credit portfolio of Armenia’s commercial banks grew by AMD 210bln in 2010 compared to 2009.

Besides, decrease in interest rates for all loan products was recorded, Stepanyan told a press conference in Yerevan.

“It is a result of our policy during the past 5-6 months. We are glad that loans were basically allocated to the industry and investments, what has resulted in increase in industry’s share in Armenia’s GDP,” said Stepanyan.

The expert also said that the monetary terms will be toughened in 2011 that will lead to reduction in paces of growth in volumes of lending and, possibly, to increase in interest rates.

“This action will be taken to prevent extra inflation pressures due to growth in gross demand,” said Stepanyan.