Aram Mkrtchyan:

Anelik Bank planning to improve automation system

PanARMENIAN.Net - The global economic crisis has struck Armenia's banking system. The income of a large number of banks has decreased by 20%, in addition to March devaluation. Nevertheless, the first quarter of the year is over and there is hope for the better. President of Anelik Bank Aram Mkrtchyan commented to on current problems and plans for future to PanARMENIAN.Net.
How did the economic crisis affect the bank's activities and money transfer system?

Anelik Bank is a bank with its own money transfer system, which functions in more than 200 banks in 100 countries. It's natural that the crisis affected it. Anelik system functions in many former socialist and Western European countries. Due to the crisis consequences, we expect 10-30% drop by the end of the current year. Besides, some banking processes were frozen, as a result of panic-stricken population.

What losses did Anelik suffer during the first quarter of 2009?

As a rule, the average annual index rules out possibility for incomes and losses in banking system. Some of the operations launched by the bank now produce results which accumulate and become visible some time later. Like any other business entity, we also incurred the crisis impact, and during the first quarter, the bank capital significantly decreased in comparison with last year."

What's the bank's loan policy?

We always meet our clients half-way. Some of them import products in Dollars, hence, loans in foreign currency are more advantageous to them. Clients carrying out transactions on domestic market prefer loans in Armenian Drams. Notwithstanding the crisis, our current policy is not aimed at providing loans only in Drams or only in Dollars.

What's the situation with long-term credits, are there any risks of their irrevocability?

At present, bank's credit portfolio comprises around AMD 19 billion. Anelik calculates and diversifies its risks. First and foremost, we're paying attention to the financial situation of our potential borrowers, their sphere of activity, economic sector they work in and provide credits based on the facts discovered. We also offer advising on crediting procedure (crediting terms, conditions, interest rate, currency, etc.) to discover more acceptable conditions for our clients, that the client itself could be sure he'll be able to return the loan.

What kind of banking operations, including types of loans, will be emphasized this year? 

All customers of the bank are equal in terms of bank's primary policy and directions, all banking operations are necessary and acceptable, we expect equal development of all products. We project to improve the level of atomization of bank's activities and to attain full banking services. For instance, we introduced the system of utility payments  in Yerevan, and introduce it in  all branches of the bank. Although in terms of profit, this is not such a profitable instrument, but we believe that our client entering any office of our bank must receive full-fledged service. Therefore we do not emphasize this or that instrument or banking product, we expect their concurrent development.