YEREVAN. - Effects of the depreciation of Armenian national currency (Dram) on the national economy should be manageable, IMF Resident Representative in Armenia Teresa Daban said, Armenian News - NEWS.am reports.

Speaking on Friday in Yerevan, Daban added that the capital adequacy ratio of the banking system is within the bounds of the regulations of the Central Bank. According to her, this means that banks have built up safety cushions enough to last them through a temporary shock.

The total ratio of past due loans and nonperforming loans in Armenian banking system, as of August 2014, is 7,65% of the aggregated loan portfolio (according to data provided by the Central Bank). This is well under coverage of the key financial soundness indicators, Daban added.

Accordingly, the capital adequacy ratio of the banking system, as of September 2014, is 16,3%, staying almost flat for the last 12 months, and liquidity ratio is 26,7%, which has also been relatively steady.
The Armenian dram has plunged 3,8% downwards to the US Dollar on November 24, reaching AMD 433 /$1. As of Dec. 5, 2014, Armenian Dram has lost another 12 points, reaching AMD 447,86/$1 (official Central Bank rate).