ArmInfo.VTB Bank (Armenia) has already cancelled fines and penalties for more than 2,000 bad loans for more than 1 billion drams. As the press service of the Bank told ArmInfo, these are the results for 2.5 months from the moment of the start of the process of amnesty of fines and penalties on bad loans.
Starting from July VTB Bank (Armenia) jointed the process of amnesty of penalties and fines on consumer loans of individuals overdue by more than 271 days and recognized as bad by May 31, 2018. This offer is valid until December 3, 2018. Since the launch, this opportunity has immediately been in great demand among customers.
VTB Bank (Armenia) reminds that customers willing to discuss the further repayment of the remaining debt on consumer loans (loans in cash without collateral and secured by real estate, POS loans, credit lines, loans secured by gold products, credit cards) in case of meeting the above criteria, need to visit any branch of VTB Bank (Armenia) with a passport and social card until December 31, 2018 to conclude an amicable agreement with the provision of a new repayment schedule for up to 5 years.
An obligatory condition for concluding an amicable agreement with the condition of forgiveness is the implementation of the first repayment on the day of registration of the settlement agreement.
According to the message, the new debt repayment schedule and the conclusion of a settlement agreement are made on the day the client applies to the Bank's branch on site, and after the initial payment takes a minimum amount of time - from 15 minutes.
To note on July 2 this year a meeting of the prime minister with the bankers was held in the government of the Republic of Armenia with a view to the practical solution of the issue of concessions of fines and penalties on overdue loans. On the same day, ACBA-Credit Agricole Bank and Ameriabank announced the cancelation of fines and penalties for bad loans to individuals, then ID Bank (July 4), VTB Bank (Armenia) (July 4), Ardshinbank (July 6) and Converse Bank (July 11) also made similar announcement. According to the Financial Rating of the Armenian Banks prepared by ArmInfo as of July 1, 2018, , VTB Bank (Armenia) takes the 1st position in terms of consumer loans - 92.4 billion drams or 54% of the total loan portfolio of the bank. On a y-o-y basis, the bank increased its consumer loan portfolio by 41.1%. The share of overdue loans in the total loan portfolio of VTB Bank (Armenia) exceeds 29%, with a y-o-y growth in the absolute value of the NPL by 17.4%. In the loan portfolio of the bank, the share of bad loans exceeds 18%, and in the structure of overdue loans this category of risky loans dominates - over 59%, against the higher figures of the previous year - 21.5% and 80.1%, respectively. On y-o-y basis, the volume of bad loans of the bank decreased by 13.4%. Of the total volume of bad loans of the bank, only 4.2% are concentrated on consumer loans (including mortgages), while the dominant weight was concentrated in loans to the trade sector, the industrial sector, the construction sector and the agricultural sector. To recall, VTB Bank (Armenia) CJSC became a participant of the international financial group VTB in April 2004. At present, VTB Bank, the second largest bank in Russia, owns 100% of VTB Bank (Armenia). The Bank is traditionally one of the leaders of the banking system of the Republic of Armenia in terms of key indicators. In terms of coverage of the branch network, VTB Bank (Armenia) holds the leading position - 67 branches with presence both in the capital and in all regions of the country.
