Leased Vehicles Will Not Be Able to Cross the Border of Armenia

Vehicles under lease may soon be prohibited from crossing the border of Armenia. This was announced today at a government session by the Minister of Justice, Karen Andreasian, who presented a draft of the relevant legislative changes.

According to him, such a restriction is not currently stipulated in existing legislation, which creates serious problems for leasing companies and lessees. The new regulation will allow them to independently resolve this issue.

"The draft establishes a discretionary regulation, meaning the parties will decide whether to allow the lessee to cross the border of Armenia solely with the lessor’s agreement," said Andreasian.

According to the minister, this regulation will minimize the risk of loss concerning leased vehicles. Prime Minister Nikol Pashinyan also noted that there are cases in Armenia today where a leased vehicle has left the country and disappeared, for example, it was sold in Georgia as a spare part, while the debts remain unpaid.

The government leader emphasized that this regulation will protect not only the interests of the seller of the leased vehicle but also those of the buyer, as the clarification of guarantees will help to activate the market, even potentially leading to a decrease in interest rates.