Non-performing loans make 10% of Armenian banks’ portfolio, VTB24 board chairman
30.09.2016,
18:00
The share of non-performing loans in Armenian commercial banks’ portfolio is 10 percent, VTB24 Board Chairman Mikhail Zadornov told a news conference in Yerevan today.
YEREVAN, September 30. /ARKA/. The share of non-performing loans in Armenian commercial banks’ portfolio is 10 percent, VTB24 Board Chairman Mikhail Zadornov told a news conference in Yerevan today.
He said this is the official figure, while in reality the figure may be slightly higher. In Russia this figure is approximately the same - 10-11%, and the corporate and retail portfolios are not too different.
He explained that the key task of a bank in Russia, Europe or elsewhere is restructuring and debt collection.
In turn, VTB Bank (Armenia) CEO Yuri Gusev said that some banks have more problems, others - less, but the level of non-performing loans is the same across the banking system.
"We work to restructure the debts of some clients which is absolutely normal considering shocks in the foreign exchange market and the challenges facing the Armenian exporters in connection with the change of the national currency exchange rate , including in Russia, and it is clear that their debts need to be restructured ", he explained.
VTB Bank (Armenia) was acquired entirely by Russian VTB in 2004. It runs 67 branches across the country, more than any other bank in Armenia.
The bank's assets in the first half of 2016 amounted to 278.3 billion drams, liabilities stood at 237.1 billion drams, capital – at 41.2 billion drams, credit investments –at 168 billion drams, the bank's losses amounted to 1.248. 7 billion drams. ($ 1 - 474.57 drams). -0-
He said this is the official figure, while in reality the figure may be slightly higher. In Russia this figure is approximately the same - 10-11%, and the corporate and retail portfolios are not too different.
He explained that the key task of a bank in Russia, Europe or elsewhere is restructuring and debt collection.
In turn, VTB Bank (Armenia) CEO Yuri Gusev said that some banks have more problems, others - less, but the level of non-performing loans is the same across the banking system.
"We work to restructure the debts of some clients which is absolutely normal considering shocks in the foreign exchange market and the challenges facing the Armenian exporters in connection with the change of the national currency exchange rate , including in Russia, and it is clear that their debts need to be restructured ", he explained.
VTB Bank (Armenia) was acquired entirely by Russian VTB in 2004. It runs 67 branches across the country, more than any other bank in Armenia.
The bank's assets in the first half of 2016 amounted to 278.3 billion drams, liabilities stood at 237.1 billion drams, capital – at 41.2 billion drams, credit investments –at 168 billion drams, the bank's losses amounted to 1.248. 7 billion drams. ($ 1 - 474.57 drams). -0-
