BANKS AND CREDIT COMPANIES OF ARMENIA REDUCE CREDITING

ArmInfo
2009-03-27 15:17:00

Banks and credit companies of Armenia reduced crediting 31.6% over
the first two weeks of March versus the same period of 2008 due to
suspension of consumer lending, Executive Director of Armenian Credit
Reporting Agency (ACRA) Artak Arzoyan told ArmInfo. He said crediting
fell 5% in February 2009 versus February 2008. Decline of crediting
in Jan 2009 versus Jan 2008 totaled 18%. ‘Decline for this period of
time was the result of also reduction of average size of credits’,
Arzoyan explained. The number of credits for the first two weeks of
March was down 22% as compared to the same period of 2008 (to 16400
credits). In Jan this indicator was down 8.2%, he said.

A. Arzoyan said ACRA at present has data on 1.7 million repaid
and 800,000 current credits as well as 860,000 credit histories
(including nearly 15,000 histories of legal entities, the remaining of
individuals). As regards ACRA’s plans to introduce a behavioral scoring
system, he said that starting the next week, a poll will be conducted
among banks on the urgency of the system in the country. Afterwards,
the bureau will adopt a decision basing on the evaluations by
international organizations. ACRA Credit Reporting" CJSC, the first
private credit bureau in Armenia, was founded in January 2004 by
Credential Inc, and has already signed contracts with banks, micro
finance organizations, utility companies, grantors and insurance
companies operating in Armenia. Among ACRA shareholders are Central
Bank of Armenia with 10%, 17 commercial banks, First Mortgage Company,
American Dun & Bradstreet International LTD and others. The company
serves 22 commercial banks of Armenia and the majority of the local
credit companies.

From: Emil Lazarian | Ararat NewsPress