Armenian banks issue first-ever $300 mln syndicated loan, CBA chief says

Armenian banks have issued a $300 million syndicated loan for the first time in the country’s history, Central Bank of Armenia (CBA) Governor Martin Galstyan said at parliamentary hearings on Monday.

Speaking as he seeks reappointment for a second term, Galstyan said the banking system now has sufficient liquidity and capacity to support large-scale investment projects. “If there are sizeable projects in the real sector, banks today have the scale and capability to finance them,” he said.

Galstyan stressed that the resilience of institutions, including the Central Bank, depends primarily on the quality of their personnel, adding that efforts are underway to strengthen internal expertise through regular discussions and direct engagement with staff.

Addressing questions from opposition lawmaker Artur Khachatryan, Galstyan said the CBA’s monetary tightening did not contribute to Armenia’s economic contraction in 2020, noting that the refinancing rate was only raised starting in December of that year.

He said the economy subsequently rebounded, with growth of 5.8% in 2021, 12.6% in 2022 and around 8% in 2023, with medium-term growth projected at about 7%.

Galstyan added that overall services inflation in Armenia reached 30% in 2024, while banking services inflation was significantly lower at 7%.

Khachatryan, however, argued that banking services have become relatively more expensive and voiced concern over rising consumer debt levels. He said that as of October 2025, more than 300,000 people – roughly one-sixth of the adult population – held non-performing consumer loans.

In response, Galstyan said elevated levels of consumer lending are typical even in advanced economies and reiterated that financing for the real sector would expand in line with the availability of viable business projects.