The Liquidation Commission Established by the Central Bank Collects Loans from 'Varks.am'

The loan organization 'Varks AM' has filed lawsuits against approximately 2630 citizens since its liquidation, demanding debt repayment. This information is sourced from the judicial information system.

It is noteworthy that on March 24, 2020, the Central Bank of Armenia revoked the license for the credit activities of 'Varks AM' LLC, which created significant enthusiasm among the public, especially among citizens who had taken loans from this organization. People hoped that, due to the COVID-19 situation, repayments on their loans would be frozen, leading to a surge in complaints. However, the liquidation commission established by the Central Bank of Armenia began working in accordance with legal procedures to expedite the collection of loans from Varks.am.

The law on 'Banks and Banking Activities' in Armenia stipulates that the liquidation commission shall undertake necessary measures to identify creditors of the bank (loan organization) and to collect the debits (the loans issued), while also seeking early repayment of loans granted by the liquidated bank (loan organization).

It is important to mention that the credit organization had allowed customers to restructure their obligations, meaning that in case of paying at least 15% of the principal within the set timeframe, they could be granted a payment schedule extending from 3 to 6 months for the remaining amount. However, even in this case, thousands of compatriots have been unable to make the required payments and have found themselves in court. Thus, it turns out that not only has the number of affected citizens increased since 'Varks AM' was liquidated, but banks have also benefited by removing a strong competitor from the market.