Situation with loan defaults or, as professionals say, with their classification in the banking system of Armenia is not so favorable. The portfolio of non-performing loans (NPL) has increased by 52% over the year accounting for almost 10% of the total volume of bank loans. Most banks providing retail loans are aware that the general economic situation in the country is worsening, the real incomes of the population are falling making the population less solvent, and the foreign transfers - key factor of our economy – are shrinking. Eventually, they have fundamentally changed their credit policy, seriously curtailed their “risks appetites” and increased risk-management activities. ArmInfo’s correspondent had an opportunity to look into the risk-management activities of VTB Bank (Armenia), one of the biggest banks in the country. In an interview with ArmInfo, Aliona Stratan, Deputy CEO- member of the Management Board of VTB Bank (Armenia) speaks about the situation in the loan market, the crisis-induced behavior of customers, and how the Bank organizes its business process not to lose customers and minimize the risks at the same time.
VTB Bank (Armenia) offers small businesses more affordable loans at reduced annual interest rate - starting from 13%, as well as loan facilities at the annual interest starting from 14%. A business loan for replenishment of the key assets is provided for a period of up to 5 years. Loans for replenishment of the circulating assets have a maturity of up to 3 years.