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.
