VTB Armenia Bank on Loan Deferrals

VTB Armenia Bank, taking into account the situation in the country caused by the COVID-19 pandemic, as well as the suspension of activities in several key sectors of the economy, including trade and services, industry, tourism, and construction, announced a two-month deferment of loan payments for its individual and corporate clients starting from March 17, 2020.

Summarizing the results of the first month of loan deferrals, we report that despite the fact that our clients who have lost income entirely or partially were given the opportunity to benefit from the loan deferral, the majority of our clients made their monthly payments on their loans according to the existing payment schedule.

We are pleased to inform that 62% of our individual borrowers and 42% of corporate borrowers have not violated the payment schedules set forth in their loan agreements, which indicates the solid repayment habits and integrity of the majority of our clients, as well as the absence of a desire to extend loan repayment deadlines.

For individual borrowers who have lost income entirely or partially, the Bank has reduced the monthly loan burden by an average of 3% by extending the loan repayment schedule by 3 to 5 months. This decision was timely for our clients and significant for the Bank, as caring for our clients and their comfort is one of the Bank's top priorities.

We advise all borrowers who continue to receive income and have the capacity to meet their loan obligations to make their payments according to the original schedule in order to avoid any further extension of repayment deadlines. The Bank is regulated by the Central Bank of Armenia.