Tuesday, September 8 2020 13:31

ArmInfo. Discussions on amendments to the Civil Code proposed by the NA deputy from faction "Enlightened Armenia" by Arkady Khachatrian, postponed for 2 months. The decision was made at the sitting of the Committee on  Financial-Credit and Budgetary Issues of the RA National Assembly on  September 8.

According to Arkady Khachatryan, the submitted amendments concern the  system of guarantees for loans attracted by Armenian citizens, which  must undergo institutional changes. The MP noted that commercial  banks that provide credit funds require guarantees from the borrower  in order to avoid the risks of non- repayment.

Often the family and friends of the borrower are among the  guarantors. But they are also often unaware of the financial and  legal consequences of this step, finding themselves in a difficult  financial situation if the main borrower fails to fulfill its  obligations. As a result, the property of the guarantor is seized. As  the deputy noted, today for this reason entire villages have been  arrested, the inhabitants of which are on the "black list", worsen  their credit history, which is why they are refused when applying for  loans for the development of their farms. For the same reason,  government programs to assist farmers who have proven to be insolvent  work poorly. "They arrest the guarantor's cow, but do not touch the  borrower's property," the deputy noted.

The submitted document proposes to establish a provision according to  which the claims of banks and credit institutions should be directed,  first of all, to the borrower himself, whose property is subject to  arrest and put up for sale. And only in case of lack of financial  resources, contact the guarantor. In addition, it is proposed that a  clearly stated amount be set for the guarantor. There are situations,  Khachatryan continued, when the guarantor agrees to attract a loan of  1 million drams, but later the main borrower attracts new loans or  re-issues the old one. As a result, the amount of 1 million AMD  increases several times, including fines and pennies. A clear  fixation of the amount of guarantees will help avoid this phenomenon  in the future. The document establishes the maximum amount of  guarantees, more than which the guarantor will not pay, and in case  of attracting new loans, his written consent will be required.

The law, according to Khachatryan. will enter into force one year  after its adoption by the country's parliament. By this time,  amendments to The Civil Procedure Code, and in the Law on the  Compulsory Enforcement Service of Judicial Acts, which is necessary  for submission of a single claim. For this reason, discussions on  amendments are postponed by 2 months.