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March 29
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YEREVAN. - Armenia wants to remove the ban on property repledge, Deputy Chairman of the Central Bank of Armenia (CBA) Nerses Yeritsyan stated in the parliament today, introducing the draft amendments to the Civil Code and a number of accompanying drafts.   

He also noted that currently the Civil Code doesn’t allow rearranging mortgages, given that the previous agreement bans this. Most of the financial organizations ban this or leave it in their own discretion (by written permit). The draft proposes to consider these bans void.  

Now the banks are thereby insuring themselves from disputes on “what will be left to whom”, in case the mortgage is to be sold and several creditors are claiming for earnings.

Hence, the package of bills also establishes the priority of mortgagees’ rights in case the mortgage is to be solved.  The first mortgagee must be notified about the sale and get a priority in recovering the debt, Yeritsyan said. 

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