In the Republic of Armenia, some banks have been more affected than others by the repayment of loans given in Artsakh, according to Martin Galstyan, the director of the Central Bank of the Republic of Armenia. During a discussion on the May 29, 2023 state budget execution in the parliamentary chambers, Galstyan noted the challenges banks face in recovering from these loans in the current year. He clarified that the debt package, valued at 315 billion drams, consisted of 70% guarantees from the Ministry of Finance. Galstyan emphasized that the repayment process involves guarantees rather than direct loans. Additionally, the government and other organizations have fulfilled their obligations to the National Bank by repaying their debts. Market loans are not part of this portfolio, as Galstyan explained.

Out of the 315 billion drams, 30% has been written off from the banks’ accounts, while the remaining 70% has been received through the guarantees provided by the Ministry of Finance. In exchange, the banks have transferred the rights to the Ministry of Finance for all loans given in Artsakh, as well as other loans.

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