Saturday, February 5 2011 15:59
HSBC Bank Armenia resumes AMD lending
ArmInfo. HSBC Bank Armenia resumed AMD lending in December 2010, the bank's CEO Astrid Clifford said in an interview to ArmInfo.
She said that interests rates for mortgages and renovation loans vary between 12-14%, for car loans between 16-17% and for personal assistance loans the interest rate is 24%.
"Maximum term is 15 years for mortgages, 10 years for renovation loans, 5 years for car loans and 2 years for personal assistance loans. There are no pre-payment fees for car or personal assistance loans, for mortgages and renovation loans it is the early repayment amount x 0.1% x the remaining number of months, but this is only applicable if the loan is repaid during the first half of the loan tenor. Maximum amount is AMD100m for mortgages, AMD20m for renovation loans, AMD10m for car loans and AMD1.5m for personal assistance loans," Clifford said.
She said that at the end of last year the bank launched insurance services. "So we are now selling motor, home, travel, medical and personal accident insurance directly to our customers. We have just launched new cumulative deposit accounts – these deposits pay high rates of interest but are very flexible as they allow customers to add any amount to them at any time," Clifford said.
She said that the bank has 3 types of cumulative deposits, for short-term savings, for long-term savings/pensions and for children. "For every new child account opened we will also be planting a tree in the child's name in one of the local parks, in fact we will invite all of the children to plant their owns trees later in the year. I'm sure they will enjoy watching the trees grow and flourish as they do (and of course as their accounts do!)," the bank's CEO said.
As of 1 October 2010, the credit portfolio of HSBC Bank Armenia amounted to almost 88 bln AMD, 25% of them fell on individuals' loans, and over 70% - on economy crediting. By the volume of mortgage loans, HSBC Bank Armenia took the lead with almost 15 bln AMD, and by the portfolio of autocredits it occupied the 5th position with over 2 bln AMD. The portfolio of time deposits of the bank exceeded 36 bln AMD, over 31 bln of which fell on individuals' deposits. The share of time deposits in total liabilities of the bank made up 34,4%.
To note, the shareholders of the banks are HSBC Europe B.V. (70%) and Wings Establishment (30%). 
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