ArmInfo.IDBank decided to extend the period of forgiveness (amnesty) of fines and penalties for bad loans until August 2019. This was reported to ArmInfo in the press service of the bank.
At the request of customers, based on the number of applications, as well as realizing that borrowers need to be given another chance to restore their credit history, the Bank decided to extend the amnesty process. Initially, the deadline for submission of applications was December 31, 2018, but now this period has been extended until the end of July of this year.According to the Chairman of the Board of IDBank, Mher Abrahamyan, the Bank decided to meet those customers-individuals who, for objective reasons, have overdue loans and did not have time to apply. "We are ready to forgive fines and penalties on loans classified as uncollectible until May 31, 2018, by fully repaying loans or concluding a settlement agreement with the Bank.
Our clients have another 6 months to apply," M.Abrahamyan said.Since the start of this process (from July 3, 2018) to this day, IDBank has satisfied more than 1,200 applications, in which the total amount of forgiveness of fines and penalties exceeded 850 million drams.
According to the Financial Rating of Banks of Armenia as of October 1, 2018, prepared by ArmInfo IC, the share of NPL in the IDBank loan portfolio is 5.87%. In the structure of the NPL of the bank, the share of bad loans accounted for 45.2%, the absolute value of which in annual terms increased by 96.4%. Out of the total volume of bad loans of the bank, 35.5% are concentrated on consumer loans. The bank managed to reduce the volume of overdue loans on an annual basis by 53.7%.
To note, IDBank (until june 04, 2018, referred to as Anelik Bank) has been operating in the Armenian market since August 1990. The Bank's shareholders are the Cyprus company FISTOCO LTD with a stake of 59.68% and the Lebanese Bank CreditBank S.A.L - 40.32%. The indirect majority shareholders are physical persons: Tarek J. Khalefe (CreditBank S.A.L) and Vartan Dilanyan (FISTOCO LTD).
Recall that July 2, 2018. the Prime Minister held a meeting with bankers in the government of the Republic of Armenia in order to practically address the issue of concessions of fines and penalties for problem loans. On the same day, ACBA-Credit Agricole Bank and Ameriabank announced the cancellation of fines and penalties on bad loans of individuals, and the next day IDBank joined this process, then July 4 - VTB Bank (Armenia), July 6 - Ardshinbank, July 11 - Converse Bank.