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.
American companies are interested to invest in franchise businesses in Armenia and are ready to introduce interesting and beneficial projects to the Armenian businessmen, U.S. Charge d'Affaires Clark Price said during a forum dedicated to the growing of Armenian-US commercial ties. "I know there are many successes waiting to be born today," U.S.
The Central Bank of Armenia has left the refinancing rate unchanged - 10.25%, the press- office of the Central Bank told ArmInfo on September 22.
ACBA-Credit Agricole Bank presents a new unprecedented service in the banking system of Armenia. The service aims to support the small and medium-sized enterprises at all stages of their activities.
With the financial support of the Asian Development Bank (ADB) and in collaboration with the international consortium headed by Ameria Management Advisory Company (with Pragma advisory company being a member of the consortium), the Armenian Government initiates "Armenia Investment Forum 2016" to be held in New York in September 2016. Prior to the forum, Armenia's investment programs will be presented in road-shows on different continents. The forum organizers point out that Armenia is a country with big investment prospects.
VTB Bank (Armenia) offers a new service "Buyout of loans for consumption" which enables a customer to redeem his loan/loans in another bank/banks/credit organization/credit organizations through one loan from VTB Bank (Armenia) to minimize the monthly payments for several loans and, maybe, borrow an amount bigger than the existing borrowing from other banks/credit organizations.
ACBA-Credit Agricole Bank has launched an ACBA Mobile app for iOS and Android-based devices. The Bank has also launched a Phone Banking service for individual customers. The service allows the customers to promptly make banking transactions without visiting the Bank. The official presentation of the new services took place on September 16.
Ameriabank offers small and medium-sized enterprises (SMEs) business loans in terms of the Armenian dram (AMD) at 13.5% annual interest. The bank looks to help legal entities and private businessmen get circulating and fixed assets necessary for development. Ameriabank's press-office told ArmInfo loans are provided under GAF SME finance projects.
Foster children and teachers of Gavar Boarding School, as well as children from poor families, together with the staff of the ACBA-Credit Agricole Bank and Armenian representation of the "World Vision Armenia" international charity organization climbed to the top of the mountain Armagan of Geghama mountain ranges (Gegarkunik region), acsending more than 2800 meters on September 11.
VTB Bank (Armenia) offers its customers contracts on automatic charging of public utility payments per month, which is timesaving. According to the Bank's press-office, the customer can mention the charging date in the contact and maximum limits per type of the public utility charge. Customers will be receiving short messages about the public utility charges on the 12th of every month to make sure that the amount subject to automatic charging is right.
In the frames of distant banking services Ameriabank has introduced a new system of card-based online money transfers, which requires only internet connection and card/account number registration.
Rosgosstrakh-Armenia Insurance Company representative visited the Children Care and Protection Center after F. Nansen in Gyumri on September 4.
The insurance policy for the four classes is now possible to register, pay for and acquire in the VTB Armenia Bank, which is MTPL, insurance of real estate and property, health insurance, accident insurance. These are the insurance policies with a convenient and popular set of conditions, risks and sums insured. Convenience for the customer is that there is now no longer needed to go to the office of the insurance company for registration.
Anelik Bank was the leader in terms of the retail lending growth in Armenia as of July 1 2015. According to ArmInfo's Financial Rating of Armenian Banks, as of July 1 2015, Anelik Bank increased its loan portfolio by 61.5% (amid 10,7% average market growth), leaving behind the other banks. The improved its positions over the year, was up three positions in the rating to the top ten of banks in terms of retail lending.
VTB Bank (Armenia) keeps supporting the improvement of secondary school No.21 of the Russian Defense Ministry. The school is located in Kanaker administrative district, Yerevan.