Two-fold growth of loan restructuring applications registered in VTB Bank (Armenia)

ArmInfo. Two-fold growth of applications for restructuring of loan debt has been registered in VTB Bank (Armenia) in Q1 2016 versus Q1 2015. As the press-service of the bank told ArmInfo, the two-fold growth was registered also in terms of approved applications, while the number of refusals from restructuring by the clients reduced to 57%. This testifies that more and more number of borrowers realizes that solving problems on the early stages is one of the most efficient mechanisms of financial recovery.

According to the source VTB Bank (Armenia) has studied 241 loan restructuring applications from private entities in the period from Jan 1 2015 to April 30 2016, and 23% of the applications were approved. The bank has already improved the loan history to standard level for one third of the clients whose applications have been satisfied. It is noteworthy that the bank was not able to satisfyl 63% of the applications, as the clients have not submitted all the required documents.

The bank has also interesting statistics related to amicable agreements signed with the clients who were not able or refused to service their obligations on the stage of court proceeding or at Juridical Acts Compulsory Enforcement Service. Since the beginning of 2015, 719 amicable agreements have been signed amounted to 511 mln AMD, from which 51% are serviced according to schedule and in 12% of the signed agreements the loans have fully been paid off.

To note, VTB Bank (Armenia) joined VTB Group in April 2004 and is fully owned by VTB Group, the second biggest bank in Russia. VTB Bank (Armenia) is one of the leaders of Armenia's banking sector. It has 67 branches all over the country (the largest branch network in Armenia).