No overheating: Central Bank of Armenia keeps steady hand on credit  controls

ArmInfo.There are currently no signs of "overheating" in Armenia's economy, as stated by Martin Galstyan, Governor of the Central Bank of Armenia, at a  press conference on February 3.

"We are closely monitoring the development of the situation (we are  talking about high growth in consumer loans and low wage growth,  which imply an increase in the debt burden of citizens and a possible  overheating risk for the economy - Ed.), and if necessary, we will be  able to intervene not with monetary tools, but with macroprudential  ones - we will tighten buffer standards." He noted that at the last  meeting of the Central Bank Council, there was a debate about whether  to increase the buffer standards or leave them as is, and ultimately  they decided to keep them at the same level (for example, the counter  cyclical capital buffer was maintained at 1.75% - Ed.). The Central  Bank Council, having reviewed the entire financial cycle, decided  that the financial sector is not yet in a cycle where it needs to be  influenced through macroprudential instruments," Galstyan clarified.

According to the Central Bank of Armenia, consumer loans to Armenian  banks accelerated in growth by 2025 from 28% to 30%, amounting to 1.8  trillion drams or $4.7 billion. Including mortgages, the volume  reaches 3.5 trillion drams or $9.1 billion (an annual increase of  21%). According to the RA Statistics Committee, nominal wage growth  slowed in 2025 from 6.4% to 5.6% (amounting to 303.1  drams), while  in the private sector, it slowed from 5.7% to 5.1% (amounting to  327.6  drams).

According to the Financial Rating of Armenian Banks as of September  30, 2025, prepared by ArmInfo Investment Company, consumer loans  account for the largest share of NPLs (non-performing loans) -  approximately 40%, with a significant portion of high-risk categories  (doubtful and hopeless). The total volume of overdue loans increased  by 35% year-on-year, with consumer loans accounting for the largest  share.