Friday, April 17 2020 11:42

ArmInfo.  VTB Bank (Armenia), has  reduced its monthly loan debt burden by an average of 3%, and  extended the loan repayment term by 3-5 months for individual  borrowers who, as a result of the COVID-19 pandemic and the  suspension of the activity of a number of sectors, lost all or part  of their income. As the press service of the Bank reported to  ArmInfo, the decision was timely for customers, and important for the  bank: "Comfort and customer care is our most important task."

The report recalls that taking into account the current situation in  the country as a result of the pandemic and the suspension of  strategic industries such as trade, industry, services, tourism and  construction, VTB Bank (Armenia) on March 17, 2020 has announced  physical and legal entities two-month deferral of payment of loans.

Summing up the results of the first month of credit holidays , VTB  Bank (Armenia) reports that despite the fact that customers who lost  all or part of their income were given the opportunity to take  advantage of credit holidays , nevertheless, most customers paid off  monthly payments according to the standard payment schedule.

"We are pleased to report that 62% of individuals and 46% of legal  entities still did not violate their loan repayment terms, which  indicates a steady habit and conscientiousness of most of our  individual borrowers and a desire not to extend the final loan term.  And for our individuals creditors, which, due to the pandemic, have  lost all or part of their income, the Bank has reduced its monthly  loan debt burden and extended the loan repayment period, " director  general and chairman of the Bank's directorate. Ivan Telegin said.

For all those borrowers who continue to receive income and are able  to repay loans, the Bank recommends making payments in accordance  with the original schedule in order to eliminate the need to extend  the loan schedule.

According to the Financial Rating of the Banks of Armenia as of  December 31, 2019 prepared by ArmInfo IC, the total loan portfolio of  VTB Bank (Armenia) amounted to $ 447.1 million, in its structure  corporate loans account for about 20% or $ 89.1 million, and retail  loans - almost 79% or $ 351.4 mln. The bank increased the volume of  retail lending on an annualized basis by 25.4%. Consumer loans  dominate in the bank's loan portfolio in terms of volumes - about 82%  and the trading sector - about 14%. Moreover, the lion's share (over  88%) of corporate lending is loans to SMEs.  It should be noted that  VTB Bank (Armenia) CJSC became a member of VTB International  Financial Group in April 2004. Currently, the second largest VTB Bank  PJSC in Russia owns 100% of the shares of VTB Bank (Armenia). The  Bank traditionally ranks among the leaders of the banking system of  the Republic of Armenia in terms of key indicators and holds the lead  in terms of coverage of the branch network.