Sun, 28 September
11.1 C
Yerevan
USD: 382.71 RUB: 4.59 EUR: 446.43 GEL: 141.38 GBP: 510.80

Credit burden of Armenian consumers will be limited by law

YEREVAN, November 29. /ARKA/. The credit burden of Armenian consumers will be limited by law, Armenuhi Mkrtchyan, head of the Center for Consumer Rights Protection and Financial Education of the Central Bank, said at a parliamentary hearing on credit policy and financial literacy.

She said a new regulation is being developed aimed at protecting consumer rights. It will set the maximum ratio between credit and income of borrower.

“International studies show that a person can withstand financial shocks when his/her credit burden does not exceed 40-60% of their monthly income. In Armenia these figures are often higher,” Mkrtchyan said.

Andranik Grigoryan, the head of a Central Bank department overseeing financial stability, noted in this connection that the new regulation will apply to all types of consumer lending, including mortgage lending.

‘The bill to limit the credit burden for the consumers implies that the consumer cannot independently assess the additional burden of payments for himself/herself and this is why, it is to be limited to their income index,” Grigoryan said.

According to him, in this case, banks or credit organizations will not be able to provide a loan if a consumer’s total income will be used to make payments on credit obligations. At the same time, he emphasized that the regulation will apply to all types of financial activities. –0–

spot_img

POPULAR

“We want the word ‘investor’ in Armenia to mean normality, not elitism” – Freedom Broker Armenia

ARKA news agency spoke with Freedom Broker Armenia Director Ovak Ovakimian about the transformation of investment thinking, company strategy and trust as an economic value.

Ranking of the most profitable banks in Armenia based on results of second quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the second quarter of 2025.

The UAE instead of Europe : why Armenia needs to change its approach to crypto regulation – EXCLUSIVE

The Armenian Forum on Cryptocurrency Assets, organized by the Cilicia Business Club, was recently conducted in Yerevan.

Central Bank of Armenia initiates discussions on draft by-laws related to Law on Cryptoassets

The Central Bank of Armenia is set to conduct a public discussion on  the draft by-laws essential for implementing the Law on Cryptoassets, which became effective on July 4 of this year, as reported by the regulator's press service.

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

LATEST NEWS

spot_imgspot_imgspot_img