Armenian central bank strips Varks AM credit organization of license

25.03.2020 15:05
Armenian central bank strips Varks AM credit organization of license

YEREVAN, March 25. /ARKA/. The Central Bank of Armenia has announced yesterday the license of Varks AM Credit Organization invalid, the press office of the regulator reported on Wednesday.

The credit organization provides loans at the expense of its funds and does not have the right to raise funds from individuals, particularly deposits.

It has become clear in the course of the monitoring carried out by the central bank that the financial reports submitted to the regulator by the universal credit organization Varks AM in December 2019 and in January 2020 contain untrustworthy data on the total capital indicator.

To clarify the situation, the supervisor of the central bank requested additional, more detailed information about the financial indicators included in the report. The results of the scrutiny and a comprehensive analysis of the information presented with an assessment of the risks of the organization show that the requirement for the minimum amount of total capital has been violated by the "Varks AM" CJSC, which led to a violation of two paragraphs of Article 18 of the law on credit organizations.

Taking this into consideration, in accordance with the protocol drawn up on February 25th, administrative proceedings were launched against Varks AM UCO CJSC for deciding punishment. As part of the proceedings, on March 18 and March 20, the Central Bank organized hearings attended by the credit organization’s representative, who gave explanations that the central bank did not assess as satisfactory.

After the license validity termination, in the manner specified by law, a liquidation commission will be formed to implement due functions. -0-


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