Armenian banks won’t be allowed to seize client accounts in full

15.08.2014 15:24
Armenian banks won’t be allowed to seize client accounts in full

YEREVAN, August 15. /ARKA/. Armenia’s government approved the draft amendments to the law about enforcement of court orders at its meeting Thursday.

The decision about the bailiff service’s seizing the funds in banks or other credit organizations will not relate to the entire account (like it is in the current law), but to the amount due to creditors, Armenia’s minister of justice Hovhannes Manukyan said in presenting the amendments.

The amendments are made to protect owners’ right as cases of freezing all the funds on the account instead of the debt amount have become frequent recently, Hovhannisyan said.

Banks and credit organizations are to pay compensations if the seized amount is more than what is mentioned in bailiff’s decisions. In particular, banks will have to pay a penalty of 0.1% of the excess amount per day to compensate for the loss suffered by the client, the minister said.

Premier Hovik Abrahamyan, in his turn, proposed to consider the amendments urgent and submit them for parliament’s consideration as quick as possible. –0--


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