ArmInfo. The system of guarantees for loans attracted by Armenian citizens will undergo institutional changes. The RA National Assembly at the January 19 sitting in the second and final reading introduced amendments to the Civil Code, proposed by the NA deputy from the "Enlightened Armenia" faction Arkady Khachatrian.
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 among the guarantors are relatives and friends of the borrower. 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, for which reason 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 to establish a clearly prescribed amount in relation to the guarantor. There are situations, Khachatryan continued, when the guarantor agrees to attract a loan of 1 million drams, but subsequently the main borrower attracts new loans or re-issues the old one. As a result, the amount of 1 million drams increases several times, taking into account fines and penalties. 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