A growth in the lending activity was recorded in Armenia last year in all loan types, especially in mortgage loans, the Central Bank Governor Martin Galstyan said at a press briefing on the 2021 financial stability report.
“A growth of activity was recorded in the lending market in 2021. By successfully overcoming the unfavorable impacts of 2020’s shocks, growth trends were recorded in all areas of lending starting Q2 of 2021,” he said.
The financial cycle index grew, which reflects the dynamics of the financial market growth and loan activeness. Developments in the mortgage market greatly contributed to the growth of the financial cycle.
Galstyan noted that in order to more effective address the risks in the mortgage market they introduced the LTV (Loan-To-Value) maximum limit requirements.
He added that in 2021 both the quality of the loan portfolio and the ability to absorb risks of banks improved.
