YEREVAN, February 17. /ARKA/. The share of bad loans in the system is declining and is less than 2%. Daniel Azatyan, head of the Union of Banks of Armenia (UBA), announced this at a final press conference.
“I don’t remember the exact figure right now, but if previously it was around 5%, now the share of bad loans is even lower than 2%. You also know that the government has developed an assistance program, which has benefited approximately 8,000 people, which is less than expected,” Azatyan said.
About the program
The program provides support to individual borrowers whose entire loan portfolio has been classified as bad for three or more years, and whose principal amount does not exceed 1 million drams (or the equivalent in foreign currency).
As part of this program, beneficiaries are given the opportunity to use 100% of the income tax calculated from their salary and equivalent payments (income received under a civil contract) to pay off bad loans.
Support is provided for a period of up to 24 months, beginning on the first day of the month following the recognition of the beneficiary, but no longer than until the bad loan is fully repaid, support is terminated based on an established decision, or the obligation is terminated on grounds stipulated by law.
On December 11, 2025, the Armenian government extended the program to stimulate economic activity for individuals with bad loans. It is proposed to allocate 278.2 million drams (approximately $730,000) to finance the program in November and December 2025.
According to the draft, 1,896 people were recognized as beneficiaries of the program based on applications submitted in February 2025, 2,295 in March, 2,866 in April, 3,193 in May, 3,686 in June, 3,530 in July, 3,652 in August, and 3,842 in September.
Based on applications submitted in October 2025, an additional 500 people will become beneficiaries, of which approximately 100 are employees of the Ministry of Defense, the Ministry of Internal Affairs, the National Security Service, and the Judicial Enforcement Service. They will be able to take advantage of the program starting in November 2025. It is estimated that their total income tax (which is gradually used to pay off their loan debts – ed.) at the time of application is approximately 18.9 million drams.
Based on applications submitted in November 2025, 700 people will become beneficiaries, of which approximately 100 are employees of the Ministry of Defense, the Ministry of Internal Affairs, the National Security Service, and the Service for the Compulsory Enforcement of Judicial Acts.
