Ardshinbank launched process of zeroing accumulated fines, penalties  for bad loans to individuals

ArmInfo.Ardshinbank, adhering to the decision of the Government of the Republic of Armenia, and within the framework of its policy of assisting individual borrowers by providing, on acceptable terms, instruments for restructuring and refinancing of bad credit obligations, has launched the process of zeroing accumulated fines and penalties on bad loans of individuals.  The press service of the Bank informed ArmInfo about this.

According to the source, for loans classified as bad by May 31, 2018,  in case of repayment under the established conditions and in the  stipulated amount, accumulated fines and penalties will be fully  forgiven.

The bank also offers borrowers with non-performing loans with a  90-day or more delay to benefit from the terms of debt restructuring  and the possibility of partial repayment.

For more details on the process and conditions for forgiveness of  accrued fines and penalties on problem loans, one can visit the  website of the Bank at www.ardshinbank.am or call the 24-hour inquiry  service at (012) 22-22-22.

According to the Financial Rating of Armenian Banks as of April 1,   2018, prepared by IC ArmInfo, Ardshinbank is in TOP-3 by the main  financial indicattors. The banks loan investmetns totaled 412,3 bln  drams ($858,9 mln, the 2nd place) with 14,1% y-o-y growth. In total  loan portfolio of the bank the share of overdue loans is 5.2%, the  major part of which are controlled and doubtful. In y-o-y terms the  absolute volume of NPL has significantly increased. In the total loan  portfolio of the Bank, the share of doubtful loans is 1%, and in the  portfolio of overdue loans, the share of this category exceeds 43%.  About 42% of doubtful loans are consumer loans (including mortgages).   By the volume of consumer loans, the bank takes the third position,  and by mortgage - holds the leadership, and their share in the total  loan portfolio of the bank is 19.4% and 7.7%, respectively. The  bank's mortgage loans grew 13.4% year-on-year and consumer loans by  17%. In its report on the classification of the loan portfolio by  risk groups, the bank does not indicate the amount of bad loans.  Ardshinbank completed the first quarter of 2018 with a net profit of  2.2 billion drams ($ 4.6 million, the 2nd position), with an annual  growth of 76.3%. In terms of loan proceeds, the Bank holds the 2nd  position, ensuring their share in total revenues at a level above  44%.

Ardshinbank was founded in 2003. The majority shareholders of   Ardshinbank are Arins Group LLC (renamed OOO Center for Business   Investments) on January 1, 2018 with a stake of 67.97% and CJSC   Industrial and Financial Corporation REGION - 29.52%.  Ardshinbank is   the second largest bank in Armenia, having one of the largest branch  networks, consisting of 63 subdivisions. Ardshinbank is the only   private institution in Armenia that has been assigned ratings of two   international rating agencies (Moody's and Fitch) equal to Armenia's   country rating.  

To recall on July 2 the Prime Minister met with bankers to find the  practical solution of the issue of concessions of fines and penalties  on problem loans. On the same day, ACBA-Credit Agricole Bank and  Ameriabank announced the abolition of fines and penalties for bad  loans to individuals, then IDBank (July 4) and Ardshinbank (July 6)  announced the accession to this process.