Tweet
ARMENIA'S CREDITING MARKET IS POORLY DEVELOPED: EX CB PRESIDENT
Yerevan, January 31. ArmInfo. Specialized credit organizations in
Armenia are just beginning to develop - they issue 5% of total
credits in the country, says the executive director of Garni Invest
Universal Credit Organization, Ex President of Central bank of
Armenia Bagrat Asatryan.
He says that this is due to slow financial market development rates
and imperfect legislation, particularly, in housing construction and
consumer crediting. In Armenia the demand for these credits is much
higher than the offer. At the same time, in the last three years
crediting has been growing quicker than economy. Asatryan notes that
Armenia needs a law allowing to restructure credit organization into
commercial bank.
Garni Invest was set up in Oct 2006 with an authorized capital of
196mln AMD.
Last year it worked at a loss due to primary expenses - this year it
is planning a profit equivalent to 6%-7% of its total
capital. Presently, Garni Invest's credit portfolio totals 150mln AMD
- in Jan-June 2007 it will be raised by 60mln AMD a month. By the end
of this year the assets of Garni Invest will amount to 500mln AMD,
while the liabilities will exceed 300mln AMD. The money will be
attracted from the shareholders. Presently, Garni Invest has 10
shareholders, of whom 7 are non-residents (from the US, Germany and
Iran).
Asatryan says that Garni Invest issues consumer and business
credits. The share of business credits in the total portfolio exceeds
50%. The maximum credit per borrower is 50mln AMD, the interest -
21%-26%, the maximum repayment period - 7 years.
Yerevan, January 31. ArmInfo. Specialized credit organizations in
Armenia are just beginning to develop - they issue 5% of total
credits in the country, says the executive director of Garni Invest
Universal Credit Organization, Ex President of Central bank of
Armenia Bagrat Asatryan.
He says that this is due to slow financial market development rates
and imperfect legislation, particularly, in housing construction and
consumer crediting. In Armenia the demand for these credits is much
higher than the offer. At the same time, in the last three years
crediting has been growing quicker than economy. Asatryan notes that
Armenia needs a law allowing to restructure credit organization into
commercial bank.
Garni Invest was set up in Oct 2006 with an authorized capital of
196mln AMD.
Last year it worked at a loss due to primary expenses - this year it
is planning a profit equivalent to 6%-7% of its total
capital. Presently, Garni Invest's credit portfolio totals 150mln AMD
- in Jan-June 2007 it will be raised by 60mln AMD a month. By the end
of this year the assets of Garni Invest will amount to 500mln AMD,
while the liabilities will exceed 300mln AMD. The money will be
attracted from the shareholders. Presently, Garni Invest has 10
shareholders, of whom 7 are non-residents (from the US, Germany and
Iran).
Asatryan says that Garni Invest issues consumer and business
credits. The share of business credits in the total portfolio exceeds
50%. The maximum credit per borrower is 50mln AMD, the interest -
21%-26%, the maximum repayment period - 7 years.