As far as credit vacations and credit amnesties are concerned, there is a need to seek solutions. There can be credit vacations and credit amnesties with the government’s warranties, and banks could make concessions with respect to payment of interest rates. This is what Head of the Center for Innovative and Institutional Studies at the Armenian State University of Economics, economist Atom Margaryan told Armenian News-NEWS.am, adding that achieving this through administrative methods is risky since financial institutions may declare bankruptcy.
“Of course, credit amnesty in all directions and completely can’t be a permanent resource. Armenia’s banking system is somewhat hinged on ‘oligopolistic agreements’, which is also linked to the conventional approaches that have been developed throughout the decades and contain elements of corruption,” he stressed.
The economist explained that there is still no social crisis in Armenia and that there could be talks about credit vacations and credit amnesties, if the state and relevant authorities weren’t able to fulfill the assumed obligations with regard to the payment of benefits and pensions, as well as salaries in the public sector.