Exclusive interview with Hayrapet Stambolyan, deputy director of Kilikia universal credit organization

ARKA - Mr. Stambolyan, Kilikia universal credit organization has been operating at the local market since September 2010. How much has it invested over these four years?

H. Stambolyan - As of October 31, 2014 our investments stood at 1.34 billion drams, a 12.6% rise from the beginning of the year. I would like to note that the organization’s focus is on micro financing to trade and services. Commercial loans account for 29% of the total lending or 390 million drams. Consumer and mortgage loans account for 43 percent (575 million drams) and 28 percent (375 million drams) respectively. This year we have introduced new mortgage products that are in high demand of customers, and there is a significant increase here as well. The bulk of mortgage loans are granted as part of the "National Mortgage" and "Available Apartments for Young Families" government-designed programs, totaling about 303 million drams.

ARKA - What are the interest rates on loans?

H. Stambolyan - The average annual rates are 17%-18%, while commercial loans are provided at the rate of 18-20%, consumer loans – at 19-22%, and  mortgage loans – at 11-13%, which are  lower than the average market rates.

ARKA –There are 32 credit organizations at the local market and 21 commercial banks. In this regard, what can you say about the competitive environment and your strategy to attract customers?

H. Stambolyan - I believe that the competition in the financial sector is quite sound, which is primarily beneficial for customers who have the possibility of choosing among financial institutions and products. Of course, we feel this competition and are also working to ensure that our clients consider it advantageous and comfortable to work precisely with our company. Our professionals have developed and introduced credit products based on the needs and wishes of our customers. For example, we have introduced student loans, unsecured loans and car loans. We are currently serving one thousand of customers, and expect their number to grow to 1,200 at the end of the year.

ARKA – Kilikia showed quite good results for the third quarter. Its equity increased by 21.8% year-on-year to 773.1 million drams, the assets increased by 0.1%, to 2.7 billion  drams, the net profit rose 35.91% to 871 million drams. In this competitive environment, what is the key to successful business from your perspective?

H. Stambolyan –The uniqueness of our organization is in a simple procedure for getting short-term and long-term loans on flexible and simplified terms with the emphasis being on reducing the time and extra efforts (resources) for customers. Our highly qualified staff regularly conducts two-way research of the financial market on the demand and supply of similar products and services. This enables us with a knowledge what, when and how to offer the most profitable and effective cooperation to our customers. 0-