ArmInfo.Micro loans of up to 200 thousand drams will not be advertised in Armenia. Amendments to the law "On consumer lending" have been adopted at the plenary meeting of the country's parliament in the first reading.
According to the co-author of the presented package, MP of the National Assembly of the Republic of Armenia Artak Manukyan, often citizens of the country, attracted by advertising offers of commercial banks at interest rates, attract credit resources without thinking about paying the principal amount of the loan. As a result, the total loan amount for many becomes an unbearable burden. For this reason, many citizens of the country were in a difficult financial situation. The package proposes to limit advertising of any type of consumer credit on radio, television, mobile communications or the Internet. The exception will be advertising on the official website of the financial structure. Information on the amount of a consumer loan should be presented in the announcement only on actual payments. The calculation of the annual actual interest rate should not include conditions that may mislead the consumer.
In its regulatory legal acts, the Central Bank establishes mandatory requirements and conditions for consumer loans in the amount of up to 200 thousand drams attracted for a period of up to three months, credit rules based on consumer criteria creditworthiness, the ratio of consumer debt and income, the rating of consumer loans. The law will enter into force on January 1, 2021. By this time, the Central Bank undertakes to prepare all the necessary regulatory acts for the application of this document.
