High levels of private or short-term debt or a deterioration in the quality of banks’ loan portfolios are additional challenges for Armenia.

The World Bank report “Armenia: Looking for More Dynamism” reads this.

“Particularly high debt levels increase a country’s susceptibility to changes in external financing conditions and currency mismatch. However, we assess this risk as low because private debt accounts for around 40 percent of total external debt and because the share of short-term external debt declined to 12 percent from a pre-crisis level of 19 percent, while public debt is largely concessional.

The level of nonperforming loans (NPLs) has been increasing since the end of 2012. However, the share of NPLs is still low, and the CBA does not require commercial banks to take additional steps to restructure their debt holdings” , the report notes.