Helsinki Citizens' Assembly-Vanadzor

What will happen to loan agreements after the revocation of its license?

April 1, 2020

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On March 24, 2020, the Board of the Central Bank made a decision to revoke’s license. After that, we receive a lot of questions from citizens regarding their  loan obligations.


Having its license revoked, the credit organization is no longer able to provide loans, however, it also refuses to defer payments of the already existing loans (which is mentioned in the loan agreement and provisions of loan allocation) and warns the borrowers that in case of not repaying the loan, they will use penalties and fines, which will entail negative consequences for the credit score. 


Let us inform that according to Article 74 of the RA Law ‘’On banks and banking’’, the bank’s Liquidation Committee shall be created at least within 5 days following the relevant decision of the CBA Board or the court on recognizing the license of the bank invalid.


On March 30, 2020, HCA Vanadzor contacted the Public Relations Service of the Central Bank of Armenia in order to get clarifications regarding citizens’ loan obligations and the procedure of liquidations committee’s formation. The Central Bank informed that the above-mentioned liquidation committee would be formed in the coming days in a manner prescribed by law, after which the Central Bank and ‘’” UCO would make an official statement and present matters pertaining to loan obligations that citizens are concerned about. 


On March 31, the Central Bank and UCO published an announcement of “ liquidating UCO” CJSC Liquidation Committee, stating that,  


“According to the Liquidation project of “ liquidating UCO” CJSC, approved on 26.03.2020, the Liquidation Committee decided:


the clients who have overdue liabilities as of April 1, 2020: the accrued interest, commissions, fines and penalties will be deducted, if they make a partial or full repayment of the principal amount.


the clients who do not have overdue liabilities as of April 1, 2020: no additional amounts of money will be accumulated (interests, commissions, penalties and fines) on their loans. Those client’s obligations will not be deemed overdue for the mentioned 2-month period.


To get more detailed clarifications regarding the above-mentioned matters, call the Liquidation Committee at +(374 12) 700 000 or write at

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