ArmInfo. "It should be conveyed to clients that we cannot expect further extension of the terms of the amnesty of fines and penalties for bad loans, otherwise it will be an incorrect message to the population," Executive Director of the Union of Banks of Armenia Seyran Sargsian told ArmInfo correspondent.
According to S. Sargsyan, there is a need to explain to the population the position of the bank in terms of its readiness to help borrowers in restoring and servicing the loan, and to demand the same from clients.At the same time, when asked whether to extend the amnesty, S. Sargsyan answered: "This is an exclusively political question. Having previously conducted monitoring, it was revealed that as a result of the amnesty of fines and penalties for problem loans, the process of servicing loans to borrowers was greatly simplified. As a result, the government amended the law and launched this amnesty program. That is, it was the decision of the authorities, reflecting their readiness. Consequently, the government must then decide whether it is ready to take such a step again or not>.
Recall that July 2, 2018. The Prime Minister held a meeting with the 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. Later and the rest of the banks. At that time, banks applied amnesty on fines and penalties of loans classified as uncollectible until May 31, 2018, and announced the final date for filing applications for amnesty on December 31, 2018.
After that, in January 2019, only one bank - IDBank announced the extension of the deadline for submission of applications until August of this year.According to the Financial Ratings of Banks of Armenia as of December 31, 2018, prepared by ArmInfo IC, overdue loans in the banking system of Armenia accelerate growth - their volume increased by 19.4% in 2018, against a meager 0.4% growth in 2017. Due to the upward dynamics of overdue loans, the share of NPL in the loan portfolio increased by the end of 2018 to 9.4% from 8.3% in 2017. In the loan portfolio of3.2 trillion drams ($ 6.7 billion, with an annual growth of 14%) overdue loans accounted for 306.5 billion drams ($ 633.5 million). Of these, over 34% is accounted for by a hopeless group, which dominated the structure of overdue loans a year earlier (60.2%). The bulk of bad loans went into consumer loans (including mortgages) - 34%, the commercial sector - 17%, the agricultural sector - 14% and industry - 8%. In the total volume of overdue loans, these areas also dominate: consumer loans (including mortgages) - 32%, trade - 14%, industry - 12% and the agricultural sector - 11.5%. Nonetheless, the government initiative for the amnesty of fines / penalties for bad loans with concomitant refinancing, launched last year, which banks started to implement without delay, allowed for a net profit growth of 79% in 2018.