Amendments to RA Civil Code
The Armenian Parliament is discussing a bill, which if adopted will increase the statutory amounts of compensation for insult and defamation provided by the RA Civil Code.
The draft envisages raising the compensation limits to 5,000,000 AMD for insult and 10,000,000 AMD for defamation. Some commentators are regarding this bill serving political purposes.
The bill has been adopted by Parliament of the Republic of Armenia in the first reading.
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Refinance Rate Elevated
In a session held on February 2, 2021 the Board of the Central Bank decided to increase the refinance rate by 0.25. The new rate is 5.5%.
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New Rules for Application of Bonus-Malus System
Hereinafter in cases, where the policyholder of insurance of liability arising out of exploitation of vehicles is a sole entrepreneur or legal entity engaged in performance of passenger transportation, both regular and, subject to licensing, via passenger taxi automobiles, such policyholders shall not be subject to bonus-malus system of calculation of their insurance premium. Instead, the bonus-malus system will be applied to the driver of a certain vehicle - solely in relation to his/her own driver history and the vehicles owned by him/her, so that good-faith businesses are protected from the perspective of being granted malus classification. The draft law on making a relevant addition to the Law of the Republic of Armenia on Mandatory Insurance of Liability Arising out of Exploitation of Vehicles was introduced to the National Assembly on February 11, 2021 by a group of deputies from the fraction “Prosperous Armenia”.
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New Mechanism for Protection of Clients of Financial Institutions
Banks entering into deposit agreements with customers, as well as banks and other financial institutions providing loans to their clients may hereinafter be subject to stricter fines for violating applicable laws and regulations, in particular – in the amount of 300,000-500,000 Armenian drams in case there has been one violation in the course of 365 days, 500,000-1,000,000 Armenian drams in case there have been two violations in the course of 365 days and 1,000,000-2,000,000 Armenian drams in case there have been three or more violations in the course of 365 days. The draft laws on making amendments to the Laws of the Republic of Armenia on Attraction of Bank Deposits, Housing Mortgage Loans and Consumer Credits passed first reading on February 11, 2021.