YEREVAN, December 12. /ARKA/. YEREVAN, 12 December. /ARCA/. The Armenian government at a session on Thursday decided to provide financial assistance to bad borrowers.
Minister of Labor and Social Affairs Narek Mkrtchyan reported that, according to the Central Bank of Armenia, approximately 341,000 individuals are classified as hopeless borrowers, with a total debt of around 642 billion drams. He also noted that only about 20% of them are officially employed.
Considering the current situation, a support program has been proposed for citizens whose debts do not exceed 1 million drams, who have been recognized as hopeless borrowers for over two years, and who are employed. Under the program, the amount of assistance provided will match the income tax payments to help them repay the debt. According to the government’s decision, financial assistance will be provided for a maximum of 24 months.
In addition, Mkrtchyan reported that 20% of the salaries of program beneficiaries will be withheld to repay their debt, instead of 50% as previously. He also mentioned that banks are willing to write off up to 80% of fines and penalties for debtors.
The program is scheduled to start on February 1, 2025, and will run until January 31, 2026. ($1 = 394.35 drams)
