ANNOUNCED, ACTUAL CAR CREDITING RATES DIFFERENT IN ARMENIA
ARKA
March 12, 2008
YEREVAN, March 12. /ARKA/. The car crediting rate announced by Armenian
commercial banks differ from the actual one, according to the Central
Bank of Armenia’s (CBA) report on car crediting on March 4-6.
When extending car credits, the country’s commercial banks charge extra
fees (for intermediation and account). At the same time, most banks
demand insuring and assessing cars in specialized organizations. Thus,
the real crediting rate gets high.
In some banks the car crediting rate is higher than in other
banks. However, taking into account extra fees, it will be quite the
contrary, CBA experts say.
The report shows customers the real car crediting rate.
The analysis is based on universal standards for ensuring the
compatibility of car purchase crediting terms set by different bank
(AMD 3mln worth car purchase credits, three years of credit payment
term and 30% prepayment).
The highest crediting rate for the purchase of cars produced in Russia
is in the Armenian Development Bank (with 19% annual percentage rate).
The highest crediting rate for the purchase of a second-hand car of
a foreign brand is in the Inecobank and VTB Bank Armenia (20%).
Taking into account extra fees, the highest actual crediting rate for
the purchase of a car made in Russia is in the Armenian Development
Bank (25.29%). The highest crediting rate for the purchase of a
second-hand car of a foreign brand is in the Anelik Bank (29.87%).
The lowest crediting rate for Russian cars is in the Converse Bank
(13%) and the lowest crediting rate for cars of foreign brands is in
the HSBC Bank Armenia (14%).
Taking into account additional fees, the lowest crediting rate for
Russian cars is in the Converse Bank (16.97%) and the lowest crediting
rate for cars of foreign brands is in the Artsakhbank (21.23%).
Only two of the 14 surveyed banks demand insuring cars. These are
the HSBC Bank Armenia and the Inecobank.
The real crediting rates for the purchase of Russian cars in the HSBC
Bank and Inecobank are 19.22% and 22.39% respectively. The actual
crediting rates of foreign cars in these banks are 19.4% and 22.79%
respectively.
The greatest difference between the announced and real crediting
rates have been recorded in the Unibank (5.78pct for Russian cars)
and in the Anelik Bank (10.87pct for foreign cars).
The real and announced crediting rates are almost the same in
the Converse Bank (3.97pct for the purchase of Russian cars) and
Artsakhbank (5.23pct for foreign cars).
Car credits issued by Armenia’s commercial banks totaled AMD 35.3bln in
early 2008. The Ardshininvestbank, Unibank and Armeconombank have the
lion’s share in car crediting (AMD 4.6bln each). ($1-AMD 308.9)
From: Emil Lazarian | Ararat NewsPress
