Zhoghovurd: Some Armenian banks have serious problems

Crisis is brewing in Armenia’s banking system, and the main problem is related to the credit system, “Zhoghovurd” daily writes, citing its sources.

“The fact is that a number of big businessmen contracted many loans and are now unable to repay. For example, a businessman mortgaged his brandy factory, showing that he had a large stock of brandies, but several months later he sold brandies and now the bank discovered that the borrower has only the building of the factory,” the paper writes.

The situation has worsened following the bankruptcy of Armavia airline that owes various banks $50-60 million.

The paper notes that the Central Bank of Armenia is concerned at the situation and held discussions. The crediting conditions were discussed again during the meeting of the CBA Board three days ago.

According to “Zhoghovurd”, Armenian Development Bank, Armbusinessbank, Ardshininvestbank, as well as VTB Bank Armenia CJSC are mentioned in this connection.