Armenian banks allowed forgiving borrowers’ debt repayment delay

YEREVAN, June 12. /ARKA/. At their extraordinary meeting held Monday, the Armenian Cabinet ministers gave their approval to amendments to the tax law, which allow banks in Armenia to forgive the fines and penalties imposed on the citizens for delay in loan repayment.

“These amendments apply only to those individuals whose loans had been recognized unrecoverable before May 31,” Finance Minister Atom Janjughazyan said Monday presenting the law.

Banks are allowed not to pay profit tax from such lifted fines and penalties, while before they had to pay this tax regardless of whether the fine was paid or not.

The minister also stressed that the remission of fines doesn’t mean exemption from payments on the basic sum.

The initiative is not mandatory – banks are left with an option to forgive borrowers or not.

Besides, in accordance with the amendments, the remission is possible only in the event of the basic sum payment within 90 days.

Prime Minister Nikol Pashinyan said that this decision is also aimed at removing tension from relations between banks and borrowers.

The amendments let citizens and banks to remove the borrowers’ bad records and begin their relationship from a new page. -0—-

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