YEREVAN. - The Central Bank of Armenia (CBA) proposes criminal sanctions for damaging collateralized property, Deputy Chairman of CBA Nerses Yeritsyan stated in the parliament today, introducing the draft amendments to the Civil Code and a number of accompanying drafts.
The creditors will thus no longer be able to avoid forced sale of property for debts.
It is proposed to apply 50-100,000 AMD penalty (approx. $200-210), 2-month arrest or detention for up to 2 years as a punishment for cases when the bank faces the necessity to sell the property, but the creditor has made this impossible (by intentionally damaging the property, hiding it away or selling it without notifying the bank).