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.
