Procredit bank to build up its business lending portfolio to $96.5 million in 2012

04.10.2011 21:56
 Procredit bank to build up its business lending portfolio to $96.5 million in 2012

YEREVAN, October 4. /ARKA/. ProCredit Bank intends to build up its business lending portfolio from present $54.5 million to $96.5 million in 2012, Asmus Rotne, executive director of the bank, said Tuesday at a news conference.

He said that the bank recently started offering up-to-12-year loans to its clients for capital investments.

These loans, he said, would enable small companies to run more resolute long-term business activities.

Rotne said that the bank also intended to enlarge individual lending portfolio from present $21.8 million to $39 million in 2012.

The number of individuals will grow from present 11,600 to 14,000 by late 2012.

The executive director said that ProCredit Bank will offer SMS notification services to its clients soon. Automatic system for paying bills for utilities will be available to the bank’s clients as well.

The bank has ten branches, of which seven are in Yerevan and the remaining three are in Vanadzor, Gyumri and Artashat. The bank plans to increase the number of its branches to 18 the next year. Of these branches, 14 will be in Yerevan. One branch will be opened in Armavir.

Lusine Nersisyan, chief accountant of ProCredit Bank, answering ARKA News Agency’s question, said that agricultural loans in the bank’s loan portfolio total $6 million. The bank intends to enlarge agricultural lending the next year.

She also said that loans extended under the governmental interest-subsidizing program constitute 50% of the bank’s agricultural lending portfolio.

On April 1, in accordance with the government’s decision, banks started extended preferential loans to farmers at 14% annual interest, of which 4% are subsidized by the government. The total amount of subsidies is AMD million.

Loans are extended in Armenian drams. Average size of one loan is AMD 625,000.

ProCredit Bank in Armenia is part of the ProCredit Group, consisting of financial institutions operating in Eastern Europe, Africa and Latin America, which are governed by ProCredit Holding AG located in Frankfurt am Main, Germany. ProCredit Holding AG holds 68.46% of ProCredit Bank’s shares, 16.67% belong to EBRD and 14.87% to KfW. -0---


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