Draft of the Decision of the Government of the Republic of Armenia “On approving the policy paper on Introduction of the private system of compulsory enforcement” has been put out for public discussion by the Ministry of Justice of the RA. The Policy Paper presents the possibility of introduction of the private system of compulsory enforcement and the specific problems to be addressed by this introduction, as well as outlines the possible solutions brought by the reforms to provide essential conditions for introducing the private enforcement system in the Republic of Armenia.
The development of the Policy Paper is conditioned by the urgent need to raise the productivity of the operation and performance results of compulsory enforcement system, since in the period ranging from 2015 to 2019 a 64.3 percent growth has been observed in the overload of the Compulsory Enforcement System, however the average correlation between the money subject to confiscation according to the acts to be performed and the factually confiscated money has been only 11.48 percent. In this context the whole or partial introduction of the private enforcement system in the Republic of Armenia will give an opportunity:
- to raise the productivity of the whole system of compulsory enforcement and certain compulsory enforcement officers as well;
- to ensure the involvement of highly professional personnel due to the higher and stable profitability of the private system;
- to decrease the resources of the state budget allocated to the state system of enforcement;
- to decrease the tension and conflict between the creditor, debtor and the state in face of the judicial officer, which will cause the decrease of the social, political and economic tension of the compulsory enforcement system;
- to promote the voluntarily and operative fulfilling of the obligation by the debtor, which will allow reaching the realization of the final goal of the judicial act, and, on the other hand, will decrease the interference of the state in disputes arising from the civil legal relations;
- to raise the reputation of the judicial system in the eyes of the public by the promotion of the effectiveness of the compulsory enforcement of the judicial acts.
It is important to underline that the private system of compulsory enforcement is widespread in the world and operates, for example, in France, Italy, Poland, Romania, Hungary, Netherlands, Slovenia, Slovakia, Moldova, Estonia, Lithuania, Kosovo, Georgia and several other countries. Belgium, Kazakhstan, Bulgaria, Canada, Great Britain and some other states have a mixed system of compulsory enforcement. It’s remarkable that currently the idea of introduction of the private system of compulsory enforcement is being actively discussed in the Russian Federation as well. The initiative of the introduction of the private enforcement system in the Republic of Armenia has been welcomed by the International Union of Judicial Officers. The International union has undertaken readiness for vigorous support to the process of reforms.
The introduction of the private enforcement system doesn’t mean the exempt of the state’s responsibility in providing compulsory enforcement. Irrespective of the operation of the function of compulsory enforcement through the private entities in the context of solutions suggested in the Policy Paper the state will continue to bear responsibility for legality and appropriateness of the enforcement procedure and damages caused to the stakeholders during the compulsory enforcement as well.
Considering the essential role of the enforcement of the judicial act in guaranteeing the right to fair trial we ask all interested people and bodies to actively participate in the public hearings of the Policy Paper and to support in raising potential questions regarding the Policy Paper.
The Compulsory Enforcement Service of the Republic of Armenia expresses its willingness to conduct the public hearings of the Policy Paper through meetings as well.