VTB Bank Armenia: banks ready to cut margin, but won’t take high risks

PanARMENIAN.Net - Director General, Chairman of the Board of Directors of VTB Bank Armenia Valeriy Ovsyannikov said that optimal interest rates are applied for a corporate business in Armenia, while those for small and medium enterprises are too high.

Ovsyannikov noted that the decrease in bank interest rates was discussed during a meeting with Armenian President Serzh Sargsyan.

According to him, banks are ready to lend the real sector of economy, while enterprises are willing to take loans, but the efforts of the government and Central Bank of Armenia aimed at creating favorable conditions for industrial enterprises are still insufficient.

Besides, Ovsyannikov noted that high interest rates for small and medium enterprises are reasoned by difficulties faced by banks in estimating risks. “Banks are ready to cut the margin, but they will not take high risks,” he concluded.