ArmInfo.Interest rates on dram loans in Armenian banks have increased to 17.1% in 2025 (from 16.7% in 2024 and 16.1% in 2022). Daniel Azatyan, head of the Union of Banks of Armenia, announced this at a press conference on February 17.
He also noted a decrease in rates on foreign currency loans from 13.5% in 2022 to 9.1% in 2025 (compared to 9.8% in 2024). Azatyan attributed this trend to the Central Bank's 2023 decision to ban mortgages in foreign currencies (consumer loans in dollars were banned several years ago - Ed.). This decision has led to a decrease in interest rates on foreign currency loans. "Either these loans were repaid, and new ones were issued in drams. In our opinion, the increase in interest rates on dram loans to individuals is related to these restrictions, as well as the high demand for loans, both in the consumer lending market and elsewhere." He added that the increase in rates has acted as a restraining factor for higher growth in consumer lending.
Of the banking sector's total loan portfolio, dram loans accounted for 66%, while foreign currency loans accounted for 34%. In this regard, Azatyan noted that foreign currency loans are primarily for business purposes.
Overall, the loan portfolio of the Armenian banking system amounted to 7.9 trillion. AMD, with an annual growth of 23%. Consumer loans made up the majority of total loans at 23.2% or 1.8 trillion AMD (an annual growth of 29.6%), followed by mortgages at 21.3% or 1.6 trillion AMD (an annual growth of 13.2%), construction at 11% or 859.9 billion AMD (an annual growth of 30.2%), trade at 9.4% or 732.6 billion AMD (an annual growth of 16.1%), industrial loans at 9.3% or 728.3 billion AMD (an annual growth of 25.2%), and agricultural loans at 5.2% or 404.5 billion AMD (an annual growth of 16.7%).
In total, the volume of retail loans amounted to 3.731 trillion drams (49%), corporate loans - 3.438 trillion drams (45%), and the remaining 6% or 416 billion drams are interbank loans.
