News - Armenia Enforces New Law on Debt Compliance

Armenia has introduced a new law that can restrict a debtor's right to exit the country if their personal involvement is deemed necessary for executing a court ruling. This measure, part of the 'Law on Enforcement Proceedings,' is set to be enforced starting January 1, 2026. The law empowers civil courts to impose travel restrictions based on the recommendation of bailiffs, targeting cases involving non-monetary obligations. This action can be appealed, but appeals do not suspend the travel restriction unless the higher court rules otherwise. Once a debtor's location is known or the court decision is annulled, the travel ban is lifted. The law aims to enhance the efficiency of dealing with civil disputes where the debtor's presence is crucial, reflecting a significant step towards bolstering Armenia's legal framework in enforcing court decisions.