2024 loan portfolio of Armenian banks amounted to 6,4 trillion AMD

Union of Banks of Armenia Chairman Daniel Azatyan has lauded the SME sector as the foundation of the economy. 

Speaking at an event about the financing of the small and medium enterprises (SMEs), Azatyan said that the sector is the foundation of the economy and ensures jobs, innovative solutions and sustainable economic growth. However he noted that access to financial resources remains a key challenge.

“The Armenian Central Bank’s and commercial banks’ role is invaluable because their efforts are aimed at developing an atmosphere of financial stability, where financing will be predictable, continuous and accessible for SMEs, and will become a reliable tool for their sustainable development. Statistical data also shows this, as of yearend 2024, the loan portfolio of the Armenian banking system was 6,4 trillion drams, from which around 3,1 trillion drams are loans given to the legal entities in the economy, while loans given to SMEs amounted to around 1,6 trillion drams. In terms of the German-Armenian Fund the SMEs loaning balance volume was 174 billion drams,” he said.

The German-Armenian Fund was established in 1998 by the Central Bank of Armenia aiming to provide support to the financial sector of Armenia, by channeling funds from external and internal sources to the development of defined sectors of economy. The volume of loans since 1998 amounted to 880,5 billion drams (a total of 129,490 loans).

Azatyan said the cooperation with KfW and EIB enables to offer new financial instruments to commercial banks.

The loan programs implemented with the German KfW bank’s support have had significant impact on SMEs funding, ensuring accessible resources, improving loan terms and increasing investment opportunities of the enterprises, he said.

The Union of Banks is organizing events across the country to develop the culture of business dialogue, to present loan projects, opportunities for expanding financial accessibility and getting acquainted with issues of concern to SMEs.

Azatyan said the union “wants to create a new culture of cooperation and dialogue that would enable to implement exchange of opinions and experience, present success stories and analyze existing challenges.”