Armenian banks to forgive loans of those killed in hostilities or became disabled

YEREVAN, October 21. /ARKA./ Armenia’s National Assembly has passed today in the first reading a set of changes to the Tax Code, which if approved in the final reading, would give the local commercial banks and credit organizations the right to forgive the credit obligations of the borrowers who have died in the war in the Nagorno-Karabakh or have become disabled. The changes will apply to military personnel and persons associated with them.

Deputy Minister of Finance Arman Poghosyan said that the banks would not only forgive the accrued fines and penalties, but also the principal amount of the loan. According to him, the adoption of this bill would not only forgive loans of the killed military and the disabled personnel, but also loans issued to their closest relatives: parents, spouses and children living with them.

He pointed out that the amount of the forgiven loan is declared as income, and in order to avoid additional tax liabilities, it is also proposed to exempt it from these taxes.

In turn, the government assumes part of the financial losses resulting from the loss of income by banks and credit institutions. -0-

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