Bills in Parliament
The Fine for Violating the Rules of Free Movement During the State of Emergency Has Been Reduced
From now on, in case of violation of the conditions and demands of free movement during the state of emergency, the fine shall be 10,000 AMD. The bill was fully adopted in the second reading.
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Extensive Legislative Changes in the Field of Protection of Economic Competition
Within the framework of the package of legislative amendments initiated by the RA State Commission for the Protection of the Economic Competition, a number of reforms are envisaged, as a result of which the following may be adopted:
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GOVERNMENT DECREES
Payments (Transfers) in Foreign Currency for Derivative Financial Instruments
The draft adopted on May 21, 2020, proposes to allow payments (transfers) in foreign currency between residents in the territory of the Republic of Armenia for foreign currency loans and deposits attracted in foreign currency, derivative financial transactions and REPO agreements related to foreign currency, securities denominated in foreign currency, foreign currency or interest rate.
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Amendments in the Guarantor Institute
The draft adopted on May 21, 2020, proposes to imperatively establish that a non-entrepreneur individual guarantor must bear additional responsibility, except in very limited cases. At the same time, it is proposed to determine an exhaustive list which stipulates the conditions that shall be exhausted before a claim can be made against the guarantor.
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The First Program Aimed at Long-Term Economic Development
Taking into account the economic situation resulting from the COVID-19 epidemic, the Government of the Republic of Armenia is starting to implement strategic investments with its own participation.
As part of the program, the state will participate in the non-public specialized contractual investment Fund by the scheme " Entrepreneur+state anti-crisis investments" of the closed joint-stock company", “entrepreneur+state” and will purchase the Fund's shares.
It is proposed to consider investments in the amount of up to 50 billion drams for the purpose of acquiring the Fund's units by purchasing ten shares, each up to 5 billion drams.
The Concept paper and Client Note that we have provided to the Government also laid at the base of the implementation of the program.
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Changes in the Financial Sphere
Increase of Thresholds of Compensation of Deposits of Natural Persons And Unification of Legislation
The Client Alert circulated on April 27 addressed the Draft Law on Making Amendments to the Law of the Republic of Armenia on Compensation of Deposits of Natural Persons, which was brought to the National Assembly by the members of the fraction “Prosperous Armenia” and suggested increasing the maximum thresholds of compensation of deposits of natural persons and establishing them as AMD sixteen million for dram deposits and AMD seven million for foreign currency deposits (instead of AMD ten million and five million respectively). Guided by the rationale of ensuring unification of legislation, on May 23 the fraction submitted the Draft Law on Making Amendments to the Law of the Republic of Armenia on Bankruptcy of Banks, Credit Organizations, Investment Companies, Managers of Investment Funds and Insurance Companies, which suggests making respective amendments of the thresholds in Article 31 of the mentioned law as well (Article 31 of the Law on Bankruptcy of Banks, Credit Organizations, Investment Companies, Managers of Investment Funds and Insurance Companies provides for the order of compensation of bank’s obligations in case of bankruptcy). It is also worth mentioning that both Draft Laws have not yet been included in the agenda of the sessions of National Assembly.
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