220,000 in Armenia face AMD 180 bln overdue loan debt

PanARMENIAN.Net - About 220,000 Armenians currently have overdue loans totaling approximately AMD 180 billion, said Daniel Azatyan, head of the Union of Banks of Armenia (UBA).

"The potential number of beneficiaries with overdue debts exceeding one year and under AMD 1 million is 220,000 people, amounting to around AMD 180 billion," Azatyan told Panorama.am .

He emphasized that not all potential beneficiaries would participate in the state debt relief program.

“The program launched in February, and so far, 15,000 applications have been submitted, with 3,686 applicants approved,” Azatyan said, noting that most approved applicants had recently secured employment.

Azatyan added that state assistance provided to date amounts to AMD 135 million. Citizens have one year to apply, during which they can obtain employment and earn income, helping them avoid significant debt collections.

Under the program, banks waive 80% of penalties, and only 20% of a citizen’s salary is deducted to repay loans.