Armenia amends collateral registration procedure
21.01.2020,
16:06
Armenia's National Assembly has approved today in the first reading a package of changes to the Civil Code and the Law On Registration of Rights to Movable Property, which provide for a change in the collateral registration procedure.
YEREVAN, January 21. /ARKA/. Armenia's National Assembly has approved today in the first reading a package of changes to the Civil Code and the Law On Registration of Rights to Movable Property, which provide for a change in the collateral registration procedure.
Deputy Justice Minister Rafik Grigoryan, who presented the package to the lawmakers, said the proposed changes call for considering farmers' income from fruit harvest as collateral when they apply for loans, but it should be indicated in the contract signed by the bank and the borrower.
Grigoryan said this requirement is already effective in Georgia, Azerbaijan, Kazakhstan, Latvia and other countries, and one of the reasons behind the proposed changes is to improve Armenia's position in the World Bank's Doing Business Index.
He said in terms of ease of attracting loans Armenia ranks 48th now. According to the amendments to the Law on Registration of Rights to Movable Property, the owner of the collateral is no longer obliged to give a detailed description of each unit of the secured property, but can give a general description and indicate their total cost.
The deputy minister noted that this will simplify the work, for example, of stores, which are now forced to separately register each collateral unit. He said when the changes are approved and signed into law, Armenia's position in the Doing Business Index will improve by five notches.
In the World Bank's Doing Business 2020, Armenia dropped by six points to the 47th place among 190 countries. –0—
Deputy Justice Minister Rafik Grigoryan, who presented the package to the lawmakers, said the proposed changes call for considering farmers' income from fruit harvest as collateral when they apply for loans, but it should be indicated in the contract signed by the bank and the borrower.
Grigoryan said this requirement is already effective in Georgia, Azerbaijan, Kazakhstan, Latvia and other countries, and one of the reasons behind the proposed changes is to improve Armenia's position in the World Bank's Doing Business Index.
He said in terms of ease of attracting loans Armenia ranks 48th now. According to the amendments to the Law on Registration of Rights to Movable Property, the owner of the collateral is no longer obliged to give a detailed description of each unit of the secured property, but can give a general description and indicate their total cost.
The deputy minister noted that this will simplify the work, for example, of stores, which are now forced to separately register each collateral unit. He said when the changes are approved and signed into law, Armenia's position in the Doing Business Index will improve by five notches.
In the World Bank's Doing Business 2020, Armenia dropped by six points to the 47th place among 190 countries. –0—
