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YEREVAN, MARCH 28, ARMENPRESS. Moody’s international rating agency has changed the rating for the banking system of Armenia from “stable” to “positive”, ARMENPRESS was informed from the statement issued by the agency. According to Moody’s, the change of the prediction is conditioned by a number of economic factors.
According to the agency, in 2019-2020 Armenia will retain high GDP growth rate, nearly 4.5% annually.
“The economic growth will foster domestic consumption and exports, which will ensure growth in bank credits – by 12-15% annually. Asset quality will continue to improve”, Moody’s says, expecting decline of problem loans from 7.9% (end of 2018) to 6%.
Moody's predicts that the level of capitalization in Armenia will continue to remain steady.
According to the report, the profitability of the sector will rise.
"The main source of financing banks in Armenia is customer funds, which at the end of the year 2018, formed 70% of the funding base. Despite the decline in the dollarization of the banking system, in 2018, the dollar deposits remained high and made up 60% of total Armenian banks' deposits”, the report said.
The final part of the report states that the Government's support to banks has improved, which is also reflected in the "positive" forecast of Armenia's banking system.
Edited and translated by Tigran Sirekanyan