Converse Bank plans to increase crediting of small and medium enterprises

YE REVAN, DECEMBER 26, NOYAN TAPAN. 2008 was a successful year for
Converse Bank that has increased the number of its branches in Armenian
marzes (provinces) to 25, that of cash machines – to 41 against 29 in
early 2008, while its pre-tax profit will amount to about 2.5 billion
drams (8.1 mln USD) at the end of 2008, thus exceeding the programmed
index, the CEO of Converse Bank Ararat Ghukasian stated at the December
26 press conference.

According to him, the amount of deposits with the bank made nearly 23
bln drams as of November 30 – against 16 bln drams in early 2008. As of
the indicated date, the bank’s credit investments grew by 36% from
early 2008 and made 42 bln drams, with the crediting of small and
medium enterprises growing by 17% to 5.4 bln drams, consumer crediting
growing by 22% to 7.4 bln drams, mortgage crediting – by more than 80%
to 4.5 bln drams, and agricultural crediting growing by 130% to over a
billion drams. The credit repayment index is high. Converse Bank has a
long-term goal of increasing the crediting of SMEs not only with EBRD’s
10 million dollars but also with its own funds. The bank has raised
interest rates of its credits by 1-1.5%, but their repayment period has
also been increased up to 4 years.

Responding to NT correspondent’s question, he did not exclude the
possibility of crediting Armenian high-tech enterprises by Converse
Bank based on evaluation of their nonmaterial assets, in particular,
intellectual property. In his opinion, the problem is in the
availability of assets-evaluating organizations.

Presenting the results of the first placement of Converse Bank’s
nominal, medium-term, coupon bonds of 300 million drams, the Deputy CEO
Tigran Davtian said that the placement of these bonds with a 3-year
redemption period and a 10.64% annual yield was done in 10 days instead
of the envisaged period of 30 days. Bonds were acquired by 29 natural
and juridical persons. It is envisaged placing the remaining bonds of
1.2 billion drams in 2009.