Tue, 1 July
18.1 C
Yerevan
USD: 384.47 RUB: 4.90 EUR: 450.83 GEL: 141.25 GBP: 526.80

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

US dollar exchange rate unchanged, euro and ruble rise

The average market exchange rate of the U.S. dollar to the Armenian dram on March 7, 2025, remained at 394.58 drams, unchanged compared to March 6.

Central Bank of Armenia considering introducing long-term mechanisms for insurance against fraud

The Central Bank of Armenia is considering the possibility of introducing mechanisms for insurance against fraud.

Armenia to receive EUR 26 million loan from KfW bank for renewable energy development

Armenia will receive a loan and a grant from the German KfW bank for the implementation of the "Renewable Energy and Energy Efficiency Development" program.

Euro falls by 0.62 points to 450.23 drams

The average market exchange rate of the US dollar against the Armenian dram as of June 27, 2025, decreased by 0.59 points compared to June 26 and amounted to 384.32 drams.

Ratio of loans to deposits in commercial banks of Armenia has improved – WB review

In April 2025, deposits and loans of commercial banks of Armenia increased by 1.5% y/y and 0.8% y/y, respectively, slightly improving the ratio of loans to deposits compared to the figures for the previous year.

LATEST NEWS

spot_imgspot_imgspot_img