YEREVAN, April 14. / ARKA /. The outstanding credit portfolio of Armenian Conversebank has grown by 7% this year to 45 billion Drams, the bank’s executive director Tigran Davtian told journalists today. He said almost half of lending was extended as corporate financing.
In his words, the share of risky loans in the overall portfolio was falling if compared to last year. He explained it by economic recovery which in turn has increased return of loans by borrowers. He stressed that the bank is going to increase retail-banking and will shift the accent to stepping up mortgage and private lending as well as lending to small and medium-sized companies.
Conversebank is one of several local commercial banks that have joined a government effort to shore up struggling agriculture by sharply cutting the cost of bank lending to farmers to 14% . Armenian banks have been providing loans to farmers at interest rates exceededing 20 percent per annum, that made repayment extremely difficult.
The government subsidizes will enable farmers to borrow loans from banks at 10 percent or even less. The interest rates will stand at 8 percent for residents of more than 200 rural communities. The government has set aside 250 million Drams for agricultural subsidies.
Some 95% in Conversebank is owned by an Argentinean – Armenian businessman Eduardo Eurnekian. The Armenian Apostolic Church owns the remaining shares. ($1 – 376.83 Drams).-0-
