POLICY OF ARMENIAN CREDIT COMPANIES DESERVES POSITIVE MENTIONS

ArmInfo
11.03.2010

ArmInfo. The policy and activity of the Armenian credit organizations
in the financial market of Armenia deserve positive mentions, said Vahe
Vardanyan, Head of the Department for Financial Policy and Financial
Stability of the Central Bank of Armenia (CBA), at the first annual
meeting of the Association of credit organizations. "It is noteworthy
that last year the credit organizations of Armenia managed to ensure
growth in the main financial indices. In particular, the organizations
increased the assets by 15%, having secured a summary profit of 2.6
bln AMD", – stressed the CB representative. According to him, this
demonstrates high-quality management and risk management system in
credit organizations.

At present there are a total of 28 credit organizations in the
financial market of Armenia. Such a big number of players in this
market shows that the services of credit companies are in big demand,
and their activity is carried out according to the principle of
replenishing the banking proposal in certain sectors of economy. This
leads to acceleration of development of both banks and non-banking
micro-finance, mortgage, leasing and other organizations, as well as
to creation of healthy competition in the market.

To note, the Association of credit organizations of Armenia was
registered by the Central bank of Armenia in December 2008. The
member founders of the Association are 6 credit organizations out of
the 28 in operation, namely: UCO FINCA, New Horizon, GFC – General
Financial Credit Company, SEF International, Farm Credit Armenia and
AREGAK. At the end of 2009, the share of these organizations made up
40% of the total amount of assets of all credit organizations, over
43% of the credit portfolio, and over 42% of their total capital. The
Association contributes to development of the financial-credit system
of Armenia by means of effective and complete implementation of the
potential of credit organizations. The key task of the Association
is to represent the interests of its members in the CBA, governmental
and non-governmental bodies.