ArmInfo. ACBA-Credit Agricole Bank has summarized the results of the amnesty, which started from August 1, accumulated on bad loans and fines. As the press service of the Bank told ArmInfo, fines and penalties for the amount of over 188 million drams for 433 credit obligations were forgiven within 10 days. Under the amnesty, accrued fines and interest on loans classified as of May 31 this year as uncollectible
"At the moment, there is expected a sharp increase in the amount of amnestied fines and penalties, which is due to the unprecedented favorable terms for refinancing agricultural loans offered by the bank," the report said.
According to the source, the Bank forgives the accumulated fines and penalties for bad loans, if the borrower has pledged to repay the remaining amount of the loan at a time, or to pay only interest payments and compensate court costs. Namely: the client undertakes to pay within 1 year without interest the remaining amount of debt; or a client with a refinancing condition is issued a loan with a maturity of up to 4 years (the rates are shown in the table).
The process of amnesty penalties and fines will continue until December 31, 2018. All borrowers who wish to take advantage of this opportunity must visit the branch of the Bank serving them, learn more about the amnesty process and submit a relevant application.
Refinancing Conditions
Terms/Conditions |
Agricultural Loans |
Secured/Lombard Agricultural Loans |
Consumer Loans |
Repayment Term |
12-48 months |
12-48 months |
12-48 months |
Interest Rate |
AMD - 13,9% USD - 10,9% |
AMD - 18% USD - 14% |
AMD - 17%
|
Commission |
No |
No |
No |
Insurance |
N/a |
N/a |
N/a |
Terms/Conditions |
Secured/Lombard Loans |
Mortgage Loans for Real Estate Rehabilitation |
Mortgage Loans for Real Estate Purchase |
Repayment Term |
12-24 months |
12-48 months |
12-48 months |
Interest Rate |
AMD - 18%
|
AMD - 16% USD - 15% |
AMD - 13% USD - 11% |
Commission |
No |
No |
No |
Insurance |
N/a |
N/a |
N/a |
To note, on July 2, 2018, a meeting of the Prime minister with the bankers was held in the Government of the Republic of Armenia with a view to the practical solution of the issue of concessions of fines and penalties on overdue loans. It is noteworthy that on the same day, the first agrarian fines penalty was launched by ACBA-Credit Agricole Bank, which accounts for more than 48% of total agricultural loans or 84 billion drams (35% of the bank's portfolio). This bank, which mainly specializes in lending to the agricultural sector, provided in this portfolio a semi-annual growth of the standard group by 18% in parallel with the reduction of risk groups, the latter, based on a significant increase in profits, indicates exactly the return of problem loans to the category of employees.
It should be reminded that "ACBA-Credit Agricole Bank" CJSC has been operating in Armenia since 1995. The majority shareholders of the bank are: the largest European banking group Credit Agricole S.A. with a 15.56% interest in the capital, SJSC "Sacam International" (a member of the Credit Agricole S.A group) - 12.44%, "ACBA Federation" CJSC - 71%.