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).
