YEREVAN, July 16. /ARKA/. Kamurj Universal Credit Organization has decided to use own profits to restructure loan liabilities of 1,037 customers in Armavir and Aragatsotn provinces, whose crops had been bitten by hailstorms on May 12.
“Remaining devoted to its social mission and its policy of availability of lending for farmers, trying to ease social problems of farmers which sustained losses because of the hailstorms and wanting to create favorable conditions for current uninterrupted repayment of loans, we have decided to reconsider terms of their loans,” Ara Aghayan, the head of Kamurj UCO board, said Tuesday at a news conference in Novosti International Press Center.
He said that a group set up for that has toured these farms to see the damage inflicted by the hailstorms to each client.
Aghayan stressed that in restructuring their loan liabilities, the universal credit organization has taken into account the time needed to restore the crop, damage degrees and alternative sources of income.
“As a result, contracts were renewed with 1,037 borrowers in 26 communities in Armavir province and in two communities in Aragatsotn province, and the amount of the portfolio of the renewed loans exceeded AMD 750 million, which makes up 10% of the total loan portfolio,” he said adding that these are dram loans in size ranging from AMD 800,000 to AMD 1.5 million.
In particular, loan repayment terms were prolonged for one to two years, and interest rates, which ranged between 12 and 23% before restructuring, have considerably been lowered.
“For 600 badly damaged clients, interest rates were driven five percentage points down and for 200 other clients, interest rates were lowered by three percent,” Aghayan added.
These borrowers will also be exempted from paying any commission fee for servicing their loans, and some clients will enjoy adjournment for paying their interests.
“All the revised terms, which became effective on June 1, including payment of interests, commission fees and fines, have reverse force,” he said.
Kamurj, one of large universal credit organizations in Armenia, was registered in 2010. Before that, it implemented agricultural and other lending programs in the country as a fund.
The key focus of the organization is lending to farmers.
The company had 17,000 clients as of July 1, 2013. The company has 13 branches in provinces. Its loan portfolio amounts to AMD 8.6 billion and authorized capital AMD 4.5 billion. ($1 – AMD 409.90). ---0----