VTB Bank (Armenia) has already cancelled fines / penalties for 2000  bad loans amounting more than 1 billion drams

ArmInfo.VTB Bank (Armenia) has already cancelled fines and penalties for more than  2,000 bad loans for more than 1 billion drams. As the press service  of the Bank told ArmInfo, these are the results for 2.5 months from  the moment of the start of the process of amnesty of fines and  penalties on bad loans.

Starting from July VTB Bank (Armenia) jointed the process of amnesty  of penalties and fines on consumer loans of individuals overdue by  more than 271 days and recognized as bad by May 31, 2018. This offer  is valid until December 3, 2018. Since the launch, this opportunity  has immediately been in great demand among customers.

VTB Bank (Armenia) reminds that customers willing to discuss the  further repayment of the remaining debt on consumer loans (loans in  cash without collateral and secured by real estate, POS loans, credit  lines, loans secured by gold products, credit cards) in case of  meeting the above criteria, need to visit any branch of VTB Bank  (Armenia) with a passport and social card until December 31, 2018 to  conclude an amicable agreement with the provision of a new repayment  schedule for up to 5 years.

An obligatory condition for concluding an amicable agreement with the  condition of forgiveness is the implementation of the first repayment  on the day of registration of the settlement agreement.

According to the message, the new debt repayment schedule and the  conclusion of a settlement agreement are made on the day the client  applies to the Bank's branch on site, and after the initial payment  takes a minimum amount of time - from 15 minutes.

To note  on July 2 this year a meeting of the prime minister with the  bankers was held in the government of the Republic of Armenia with a  view to the practical solution of the issue of concessions of fines  and penalties on overdue loans. On the same day, ACBA-Credit Agricole  Bank and Ameriabank announced the cancelation of fines and penalties  for bad loans to individuals, then ID Bank (July 4), VTB Bank  (Armenia) (July 4), Ardshinbank (July 6) and Converse Bank (July 11)  also made similar announcement.  According to the Financial Rating of  the Armenian Banks prepared by ArmInfo as of July 1, 2018, , VTB Bank  (Armenia) takes the 1st position in terms of consumer loans - 92.4  billion drams or 54% of the total loan portfolio of the bank. On a  y-o-y basis, the bank increased its consumer loan portfolio by 41.1%.  The share of overdue loans in the total loan portfolio of VTB Bank  (Armenia) exceeds 29%, with a y-o-y growth in the absolute value of  the NPL by 17.4%. In the loan portfolio of the bank, the share of bad  loans exceeds 18%, and in the structure of overdue loans this  category of risky loans dominates - over 59%, against the higher  figures of the previous year - 21.5% and 80.1%, respectively. On  y-o-y basis, the volume of bad loans of the bank decreased by 13.4%.  Of the total volume of bad loans of the bank, only 4.2% are  concentrated on consumer loans (including mortgages), while the  dominant weight was concentrated in loans to the trade sector, the  industrial sector, the construction sector and the agricultural  sector.  To recall, VTB Bank (Armenia) CJSC became a participant of  the international financial group VTB in April 2004. At present, VTB  Bank, the second largest bank in Russia, owns 100% of VTB Bank  (Armenia).  The Bank is traditionally one of the leaders of the  banking system of the Republic of Armenia in terms of key indicators.  In terms of coverage of the branch network, VTB Bank (Armenia) holds  the leading position - 67 branches with presence both in the capital  and in all regions of the country.