Why Banks Are Not Forgiving Overdrafts of Forcefully Displaced Armenians from Artsakh: Social Aid Funds Are Also Being Withdrawn, Says MP

The banks in Armenia are not forgiving the overdraft debts of compatriots who were forcibly displaced from Artsakh, and even social assistance funds are being withdrawn from their bank cards. This issue was raised during a government Q&A session by Vahagn Aleksanyan, an MP from the Civil Contract faction. He emphasized that many displaced persons from Artsakh are approaching them with this problem.

According to the MP, despite a law that exempts debtors from bank requirements regarding these loans, banks continue to withdraw citizens' funds, even from social assistance accounts. In response, Armenia's Minister of Finance Vahé Hovhannisyan reminded that under this law, the government does not assume responsibility for non-secured loans, which includes overdrafts. 'Non-secured loans are not considered very legitimate; we believe they cannot be regarded as subject to repayment. We do cover consumer loans, but not overdrafts,' the minister said.

However, Aleksanyan continued, nearly every working citizen using the banking system in Armenia could receive an overdraft loan up to three times their salary, and this is a common practice. Hovhannisyan also pointed out that there is a legal question regarding whether banks can arbitrarily withdraw social assistance funds from Artsakh residents' accounts, or if these funds should be made inviolable. The Minister of Finance stated that this issue needs to be discussed to understand its legality. He mentioned that if there were to be a change in the position regarding overdrafts, it would have to be discussed in the National Assembly.