The Armenian parliament introduced amendments to the Civil Code, according to which commercial banks and credit organizations of Armenia will be limited in the rights to charge fines and pennies

ArmInfo. On December 14, the Armenian parliament at the extraordinary and final reading made amendments to the Civil Code, according to which commercial banks and credit organizations of Armenia will be restricted in their rights to charge fines and pennies.

According to the First Deputy Minister of Justice of the Republic of Armenia Artur Hovhannisyan, the draft law sets the maximum rate of fines accrued by banks and credit organizations on overdue loans, can not be higher than the 4-fold interest rate set by the Central Bank. At present it is 48%. At the same time, penalties and pennies can not be twice the principal amount, irrespective of the timing of the delay. Another change concerns the pledge of property for credit. In order to exclude the borrower's late information on the repayment of a part of the loan through the sale of property, it is proposed to establish a provision according to which the creditor agrees to notify the borrower about this within a week, and also to report the remaining amount. If within a week the borrower does not receive this notice, then no penalties and pennies in his respect can be applied. The government also proposed to limit the period for calculating fines and pennies in three months - from the time of payment delinquency and to the beginning of debt collection. For the exceeding term fines and penalties will not accrue.