Armenian banks issue AMD 6.4 trillion in loans in 2024

PanARMENIAN.Net - Armenia’s commercial banks provided around AMD 6.4 trillion in loan financing in 2024, a substantial portion of which was directed to small and medium-sized enterprises (SMEs).

According to Daniel Azatyan, President of the Union of Banks of Armenia, speaking at a conference titled “Financing opportunities and prospects for SMEs,” around AMD 3.1 trillion in loans were extended to various sectors of the economy and legal entities. Out of this, approximately AMD 1.6 trillion was allocated specifically to SMEs, reports Sputnik Armenia.

Azatyan also highlighted the loan programs carried out by the German-Armenian Fund, noting that in 2024 alone, the fund issued more than 13,000 loans to SMEs, totaling AMD 174 billion.

Since the inception of the program in 1998, the fund has granted nearly AMD 880 billion in loans to SMEs through about 130,000 loan agreements, according to Azatyan.

He added that cooperation with international financial institutions has provided Armenian commercial banks with significant opportunities to introduce new financial instruments.

“The key goal is to ensure targeted financing and to cultivate a lending culture in which commercial banks serve as the central link in the process of localization,” Azatyan emphasized.

Azatyan noted that the Union of Banks is ready to support dialogue between businesses and the banking sector by organizing events in various regions to improve the business environment.

As of 2023, around 53,000 micro-entrepreneurs were operating in Armenia. Some are active in retail and wholesale trade, while others work in services and manufacturing industries.