Araik Harutyunyan called a meeting dedicated to the partial or full compensation of citizens’ loans and borrowings

by times news cr

2024-09-03 22:13:34

On February 2, the President of the Republic of Artsakh, Arayik Harutyunyan, called an extended working consultation dedicated to the plans of the state support planned in the post-war period, which will be aimed at the partial or full compensation of citizens’ obligations arising from loans and borrowings.

The Minister of State, Minister of Finance Grigori Martirosyan presented to the President the project of the state support program developed by the Government, according to which, if the project is approved, in the near future, natural and legal persons who have a mortgage loan received before September 27, 2020 will be able to use the state support. business and consumer loans and loans. In particular, all scheduled payments for mortgage loans from September 27, 2020 to October 1, 2023 to citizens actually living in Artsakh will be compensated by the state in the amount of up to 30 million drams. But in case of selling the residential area within 5 years, the amount of support will be returned to the state.

For business loans, borrowings or leasing, interest accrued from September 27 to December 31, 2020 will be repaid, and principal payments scheduled until July 1, 2021 will be distributed over the subsequent term of the loan. If the loan expires between September 27, 2020 and July 1, 2021, the principal amount will be repaid evenly over the next 6 months. Those business entities that operate and their activity is continuous will be able to use the mentioned loan compensation program. It is also planned to subsidize all business loans by setting the most optimal interest rates according to sectors.

In terms of consumer loans (overdrafts) and loans received by individuals until September 27, 2020, it is planned to compensate the obligations for a period of 3 years, in the maximum amount of 3 million drams. According to the project, only the beneficiaries actually living in the PC will be able to use the support.

The state support program provides additional privileges for a number of categories of beneficiaries. In particular, as a result of participating in the combat operations of the defense of the Republic of Armenia or being on combat duty in the contact line, performing a special task, or as a result of the enemy’s pre-offensive action:

a) for deceased (deceased), 1st degree disabled individuals or their family members, mortgage, consumer, and business loan obligations will be forgiven (reimbursed), in the case of the latter, in the maximum amount of AMD 30 million;

b) mortgage, consumer loans, as well as business loans for citizens considered missing or their family members will be compensated for the entire period of missing, in the case of the latter, in the maximum amount of 30 million drams;

c) 2nd degree disabled individuals or their family members will receive compensation in the amount of 50 percent of the sum of the principal balances of mortgage or business loans as of 27.09.2020 (no more than 6.8 million drams for mortgage and no more than 10 million drams for business loans) for loans), forgiveness or compensation for damages, and exclusively for those with consumer loans, compensation within 10 million drams.

d) 3rd degree disabled individuals or their family members will receive compensation in the amount of 30 percent of the sum of the principal balances of mortgage or business loans as of 27.09.2020 (no more than 4 million drams for mortgage and no more than 6 million drams for business loans) for loans), forgiveness or reparation of damages, and exclusively for those with consumer loans, compensation within 8 million drams.

e) participants in war operations or their family members will receive compensation in the amount of 15 percent of the sum of the principal balances of mortgage or business loans as of 27.09.2020 (no more than 2 million drams for mortgage and no more than 3 million drams for business loans), damages forgiveness or compensation, and for those who have consumer loans exclusively, compensation within 5 million drams.

All types of loans and borrowings will be forgiven or reimbursed for owners of property acquired or renovated with credit funds in communities left out of the control of the Republic of Armenia as a result of war operations, in the case of business loans, subject to the subsequent registration of state ownership of the property. For business entities, whose property partially remained in these communities or was destroyed, it is planned to forgive obligations or compensate in proportion to the loss.

President Harutyunyan instructed the officials of the relevant bodies to finalize the project project, which may undergo some changes as a result of the discussions, and submit it for approval based on the mentioned principles. The President emphasized that it is necessary to launch state assistance programs in the shortest possible time, while clarifying their control mechanisms, which will exclude the manifestations of discriminatory or unscrupulous behavior of beneficiaries and civil servants.

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