Hanesyan: troubled SME loans make up less than 1% of Ameriabank’s portfolio
20.03.2013,
17:31
Troubled loans extended by Ameriabank to small and medium entrepreneurs make up less than one percent in the bank’s loan portfolio, Artak Hanesyan, CEO of the bank, said on Wednesday.
YEREVAN, March 20. /ARKA/. Troubled loans extended by Ameriabank to small and medium entrepreneurs make up less than one percent in the bank’s loan portfolio, Artak Hanesyan, CEO of the bank, said on Wednesday.
“We have very few troubles loans – their share in our portfolio is less than one percent,” he said.
Explaining this situation, Hanestan told journalists that this is not the result of a conservative approach, but this is the result of the right estimation of the potential borrowers’ solvency and well-justified terms, which leave no room for problems.
He said the share of problem loans in Armenian commercial banks’ aggregate loan portfolio averaged 4.3% in the last couple of years.
“Five percent is still an acceptable rate for Armenian banks, but not for us – out standard is no higher than 3%,” he said.
The banker added that the crunches which struck at Armenian banks in the last four years and are still continuing should be taken into account here.
Now Ameriabank’s SME lending amounts to more than $100 million and constitutes 16% of the bank’s outstanding loan portfolio.
Ameriabank CJSC is a universal bank providing investment, corporate and retail banking services in a package.
Ameriabank is the first investment bank in Armenia. It started providing a wide range of innovative banking services in 2007. -0-
