On 24 March, the Central Bank issued a statement stating that by the decision No 13 of 24 March, 2020 of the Board of the Central Bank of the republic of Armenia, the license of  the credit organization “Varks.am” UCO CJSC has been revoked.

It was noted that during the supervision carried out by the Central Bank, it was found out that the financial statements submitted to the Central Bank of Armenia of “Varks.am” UCO CJSC for the year December 2019 – January 2020, showed unreliable data on the total capital index.

Iravaban.net tried to get information from the Central Bank to find out whether creditors at “Varks.am” now have to make their payments, if so, whether they should be fully repaid and within what time frame. We were told by the Central Bank: “Replies to these questions are within the framwork of authority of the Liquidation Committee to be formed.”

It should be noted that the bases and procedure for liquidation of credit organizations are defined by the Law on Banks and Banking. Article 74 of this Law stipulates that the liquidation committee of the bank shall be established within five days upon adoption of the relevant decision of the court or of the Board of the Central Bank

Within three days upon its establishment the liquidation committee shall publish an announcement in the media and notify the Central Bank on the procedure and the term (not less than two months) of liquidation of the bank and submission of claims by creditors.

If the liquidation committee has not been established, the liquidation committee of the bank shall be established by decision of the Board of the Central Bank.

Alisa Chilingaryan