Banks to Waive Penalties on Unrecoverable Loans

The National Assembly has passed in the first reading a bill to amend the Tax Code of the Republic of Armenia, receiving 98 votes in favor during the vote.

This bill will allow for the waiver of penalties and fines accrued on loans classified as unrecoverable or loans that have been overdue for 91 days or more as of August 31, 2020, without tax implications.

The Deputy Minister of Finance, Arman Poghosyan, presented the amendment during the session. He noted that the government is essentially shouldering part of this burden by directly encouraging banks and credit organizations to take this step and waive such penalties and fines.

According to the Deputy Minister, the government has decided to initiate this proposal considering that many individuals are facing difficulties in servicing their loans amid the current situation.