Borrowers who are in a tight financial situation now can have a mortgage holiday

Recently, based on the offer made by the Government of the Republic of Armenia, a project about mortgage holiday was put to public discussion in e-draft.am website.

As the Government says, accepting the decision will allow people who are in a tight financial situation have a mortgage holiday for 6 months by signing a two-sided contract. The project also defines all the conditions that are called ”tight financial situation”.

According to the project, the loan or the type of the loan won’t change and no fines will be charged. It won’t reflect also on the personal loan history. The opportunity of taking a mortgage holiday is given once to each borrower. After the holiday the borrower should continue his/her payments according to the mortgage contract, which dates will be prolonged with the duration of the holiday. Some changes will be made to legislation for the project’s realization.

The authors of the document have taken into account Britain’s, Ireland’s, France’s, Russia’s experiences, but localized in Armenian reality and legislation.