Changes to the Program for Individuals with Non-Performing Loans

Several changes have been implemented in the framework of the program aimed at supporting individuals with non-performing loans. This has been reported by the Ministry of Labor and Social Affairs.

From now on, borrowers who have non-performing loans with defunct organizations can also benefit from the support program. Employees of the Ministries of Defense and Internal Affairs, as well as those working in the National Security and Enforcement Services, can also be beneficiaries of the program, provided they meet the specified conditions.

Moreover, applications of employees from the Ministry of Defense who have previously been rejected due to not being employed will be reviewed automatically, and there is no need to submit a new application. Employees of the Enforcement Service can apply after the relevant program implementation is put into place.

The grounds for rejecting applications are being clarified. Borrowers who are returning to work after taking maternity and childbirth leave, or during the period of caring for a child under two years old, can apply and continue to receive support under the program.

The relationships concerning the provision of data regarding beneficiaries to lenders are being regulated, and the grounds for the termination of a beneficiary’s status are being specified, particularly in cases of consistently having less than 18,750 AMD in income tax for three consecutive months.

It is worth noting that those who can benefit from the program for individuals with non-performing loans are those who hold credit obligations with an aggregate principal amount lower than 1 million AMD at the time of application, and whose loans have been classified as non-performing for at least three years.

Participants must be employed at the time of application, meaning they must be registered employees. The amount of support is determined based on the income tax calculated from their salary and is directed toward repaying the beneficiary's non-performing loan obligation. This support is provided for a maximum of 24 months, starting from the first of the month following the moment of becoming a beneficiary,” the report states.