Our readers probably know about the “Credit Yerevan” and the big controversy regarding its bankruptcy. It’s worth mentioning that the owner of that bank used to be deputy Martin Hovhannisyan , who isn’t in Armenia for a long time now because he is taking refuge. Before declaring bankruptcy, “Credit Yerevan” was pretty famous among Armenian banks and people trusted the bank. The businessmen of Armenia and the Armenian Diaspora (Hrair Hovnanyan, etc.) were making their investments in that bank. In December 2001, when “Credit Yerevan” declared bankruptcy, some of the businessmen were able to get their deposits back through money and property. For example, H. Hovnanyan got the building of the bank office. Of course, the businessmen getting the money back aren’t just ordinary businessmen. They were sponsored by the Armenian authorities. As for the naive businessmen, they’re still waiting with the hope of getting the money. True, the bank has returned up to 20,000 dollars to its depositors. However, many people, including Armenians from the Diaspora, had invested more than 100,000 dollars in the bank, but they still haven’t received the entire amount. Let’s recall well-known businessman Levon Markos who wasn’t able to get his money back. There was a time when the depositors organized demonstrations, but they were ineffective. L. Markos was even sending open-letters. They thought that the bank administration had declared bankruptcy on purpose in order to eat up the millions of dollars. It seems as though the cheated depositors have lost hope and given up. However, one of the depositors, citizen of France, doctor Simon Elchyan, can’t accept the fact that he lost all that money. He had made a 95,000 dollar deposit at the “Credit Yerevan” bank in 1999. S. Elchyan got that money as “Grand Prix” prize money in 1998 by the “Businessmen Without Limits” international company for “Medical Service and Oncology studies”. In 1999, Elchyan returned to Armenia in order to found a clinic in Armenia. Before founding the clinic, he entrusted the money to “Credit Yerevan” bank and after the bank declared bankruptcy, S. Elchyan received 20,000 dollars just like the rest of the depositors. Elchyan has applied to different organizations for help getting the rest of his money back, including the Central Bank of Armenia, the National Assembly and President of Armenia. However, he didn’t receive any clear responses. Bankruptcy administrator of the “Credit Yerevan” bank Hovhannes Torchyan recommended him applying to the court. If the court decides that he has to get paid, then he will get his money. Elchyan has lost hope that the bank will voluntarily return the money and a month ago he appealed to the Central and Nork-Marash first instance court. The court rejected the appeal, reasoning that the court that recognized the bankruptcy of the given bank must try the case, in other words, the Economic Court of Armenia. S. Elchyan ha applied to the court for help, but the court’s decision is nowhere near a wise decision. This second instance court didn’t approve the appeal, claiming that the case first had to be examined by the first instance court. After being rejected by two courts, Elchyan understood that neither the courts nor the state wants to help him. This time he has sent an open letter to French President Jacques Chirac while the latter was in Armenia for an official visit on September 29.
“Mr. President, I ask for your kindness and protection from the Armenian authorities that are trying to violate my human rights…It’s evident that “Credit Yerevan” doesn’t care about my legal rights and as a result, it’s stealing my money. Thanks to the crime committed by the bank, I have currently separated from my family and can’t return to France to be with my wife and son. Mr. President, I ask you to please help me stand up for my rights.” Elchyan wrote a similar letter to the President of Armenia Robert Kocharyan too. Doctor Elchyan is certain that Kocharyan will pay attention to the letter after reading it. While this is going on, Elchyan’s attorney Vova Hakhverdyan has appealed to the Cassation Court of Armenia. According to the attorney, if the court were a little objective, it would satisfy the demand of the defendant. After all, the Central Bank of Armenia once said that it provides money for banks that have declared bankruptcy and to satisfy the needs of the depositors. Besides that, the bank will have other actives, such as real estate. Bankruptcy administrator of “Credit Yerevan” H. Torchyan told us during a phone conversation that their bank can’t pay the debt of the depositor and leave the other’s debts aside. “We can’t differentiate between depositors. If we give money to one person, the rest will want it too. I have told them that they can go to court. If the court decides that we have to pay, then we’ll pay.”
Armenian courts don’t even read the complaint sent by Elchyan. The “ZhpsTCHSr FSrtRprr” newspaper always places announcements for the auction of property belonging to “Credit Yerevan”. Some of the bids put up for auction include many lands in Armenia and the surrounding regions, houses, computers, office furniture, paintings and other things. It’ s impossible to think that the depositors will get their money back based on the auction sales. The price set for starters is 6,500,000 AMD. The others don’t get 1.3 million from the auction. Perhaps there are expensive pieces of material, which are not put up for auction. According to the Armenian law on bankrupt banks, the bankrupt administrator and then the creditors must receive the first salary. If there is anything left, then that goes to the depositors.