ArmInfo. The Prime Minister of Armenia instructed the Ministry of Justice to give a legal assessment and submit in a month's time its proposals on changing the practice of disposal of collateral by banks and credit companies. Karen Karapetyan stated at the government meeting that in the credit market of the country there was a practice, according to which banks and credit companies, in case of default of loans from borrowers, during whole and sometimes long term of alienation of collateral, wind up on non-creditworthy customers corresponding fines and penalties. As a result of this practice, even if the cost of collateral is initially significantly higher than the loan amount, in the long run, in practice, along with the fines, the amount of debt increases to the value of the collateral. The prime minister found this practice unacceptable and instructed the Ministry of Justice to introduce changes in the legal aspect of the problem.
According to the "Financial Ratings of Armenian Banks" latest bulletin prepared by IC ArmInfo, the growth rates of the total loan portfolio of banks accelerated in 2016 to 23.6% from 3% in 2015 against the background of improved dynamics of standard loans from 8.3% to 16.5% % With a slowdown in the growth of the total volume of NPL from 50% to 13%. But even with such an improvement in the dynamics of the loan portfolio, a more substantial growth is maintained in high-risk groups - dubious and hopeless - by 35% and 42%, the aggregate volume of which is 3 times higher than the low-risk groups (controlled and non-standard) - 187 billion versus 62 billion AMD. Over 73% of bad loans accumulated in consumer loans, agricultural sector, trade and industry, with a third of consumer "hopelessness" settled in the mortgage.