"Armenia’s banking system is becoming immersed in debts at a rapid pace due to increasing loans borrowed from foreign trade banks and financial institutions," Armenian newspaper Haykakan Zhamanak writes.
"According to the Central Bank, in the last quarter of 2014 the country’s debts to international financial institutions increased by about $225 million to $1.412 billion. The figure is striking, in that the banks’ external debts have fluctuated between $1-1.2 billion in the past couple of years, with a sharp increase being observed only after the national currency’s depreciation at the end of the year," Tert.am reports.
"The banks probably didn't attract loans in order to expand their activities, but rather for the purpose of mitigating the problems caused by the dram’s depreciation," the newspaper summed up.
