Residents of Armenia may be forbidden to receive loans in foreign currency

YEREVAN, January 31. /ARKA/. The ruling Civil Contract party of Armenian PM Nikol Pashinyan has proposed an amendment to the law On Currency Regulation and Currency Control stipulating that banks and credit organizations provide consumer and mortgage loans to Armenian residents only in the country’s national currency dram.

According to co-author of the amendment, MP Gevorg Papoyan, individuals, who are not residents of Armenia, will be able to receive mortgage loans in other currencies.

According to Papoyan, the situation when incomes of citizens are in drams, while loan payments are made in foreign currency, causes risks, the largest one is the volatility of the exchange rates, which may put citizens at risk of not being able to repay their loans.

In particular, he noted that loans taken in euros have become 5-6% more expensive since the beginning of the year. He also pointed out that the share of troubled loans in drams is around 1%, while those in foreign currencies is 5-6%.-0-

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