Araratbank to double leasing portfolio by end of 2024

ArmInfo.AraratBank intends to double its leasing portfolio by the end of 2024. Edgar Avagyan Head  of the Leasing Department at AraratBank told journalists on the sidelines of the Leasing Expo-2024 specialized exhibition.

In particular, he noted that at the end of 2023, the volume of the  portfolio amounted to about 1.5 billion drams. Mr Avagyan said that  the Bank began leasing transactions in 2011, but at that time this  market was in a passive state, and the leasing mechanism itself, as a  financing instrument, was not so widespread among the public. But  already in 2022, the Board of AraratBank has made a strategic  decision to intensify leasing. In the same year, the Bank became a  member of the Lessors' Association of Armenia. As a result, employees  undergo retraining, and already in 2023 the Bank became an active  participant in the leasing market of Armenia.

Last year, Avagyan named the financing of 100 electric vehicles,  which today are mostly operated by taxi services, as one of the  successful cases of AraratBank. "This is important for us because it  relates to green leasing and reflects our careful attitude to the  environment," he said.  Answering a question from an ArmInfo  correspondent, the head of the Department noted that it will be  possible to double the leasing portfolio this year mainly thanks to  the renewable energy leasing development program. "Because demand is  very high in the market and the Bank offers favorable conditions for  leasing transactions," he noted. In addition, the representative of  the Bank emphasized that Armenia's economy is developing, and this  development refers not only to renewable energy, but also to such  areas as construction, transport and healthcare. "All of them need to  upgrade their equipment. That is, demand is constantly growing," he  noted.

Mr Avagyan also said that as of today AraratBank works with large  businesses and SMEs within the framework of leasing operations.  However, the lion's share of leasing goes to small businesses. At the  same time, he did not rule out that the Bank will expand its coverage  of clients, including individuals.

According to the head of the Department, Araratbank today offers  leasing at an interest rate starting from 8.9% in AMD, USD and EUR,  with a repayment period of up to 10 years, without restrictions on  the transaction amount. If clients contact the bank as part of the  state program for modernizing the economy, under which the state  subsidizes interest rates, leasing may cost the client a zero  interest rate.  Diana Aroyan, Co-founder of Big Projects LLC, who is  also the organizer of the Leasing Expo-2024, attached importance to  the fact that AraratBank has been participating in this exhibition  for the second year.  "AraratBank can serve as a good example for  other financial and banking institutions. Having recently become a  market player, the Bank is actively concluding leasing agreements and  already has numerous successful cases," she emphasized.

Within the framework of the Leasing Expo-2024, visitors to the  AraratBank's  pavilion can familiarize themselves with the Bank's  special offers, receive the necessary advice to expand their business  activities, and get answers to their questions.

AraratBank provides leasing under 3 programs: <Subsidized  leasing>(https://shorturl.at/dXZ05), AraratLeasing and <Renewable  Energy Development Leasing> (https://shorturl.at/osVZ6).