28 December, 2018 10:54

Armenian Banks Annul Over Millions in Fines and Penalties

Armenian banks have annulled fines and penalties owed by 14,963 borrowers, totaling more than $14,442,000, according to a statement made by Acting Prime Minister Nikol Pashinyan on his facebook page.

In addition, Pashinyan added that, “Loan histories of nearly 124,000 customers have been revised.,”

This decision follows a meeting in July with bank executives to discuss the problem of accumulated fines and penalties for agricultural and consumer loans.

“We understand the problems faced by both banks and borrowers, and we hope to form an opportunity for cooperation that will help create conditions for the banking system to give new power and energy to the economy and all spheres of public life,” said Pashinyan

Central Bank Chairman Artur Javadyan said that all banks that are extending agricultural loans have expressed readiness to forgive the fines and penalties accumulated before June 1, 2018 as fines for agricultural loans.

Armenia’s agricultural sector remains essential to the country’s economy. Agriculture is the main source of economic activity in rural areas and a significant contributor to the GDP. It produces 14.9% of GDP (as of 2017) and employs about 36.6% (2017) of the working population of whom nearly 56% are female farmers, according to the Food and Agriculture Organization of the United Nations.

Read more:

Pashinyan says Armenian government and central bank’s cooperation aimed at citizens’ welfare

“About 100,000 people could not get a new loan because of bad credit history. Their credit history will be cleaned, and they will have the opportunity to start from a new page,” stressed Pashinyan.

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Armenian banks to forgive penalties and fines of 100,000 citizens