RA MORTGAGE CREDITING MARKET DEVELOPMENT CONCEPT WORKED OUT WITH
ASSISTANCE OF KFW BANK

YEREVAN, JULY 21, NOYAN TAPAN. A delegation of the KFW Bank (Germany)
will arrive in Armenia in September in order to work out the concept
of the mortgage crediting market development program. According to the
Armenian representative of the KFW Bank Karapet Gevorgian, the bank
experts are now preparing a technical and economic research of this
market’s development, with the report on the research results to be
submitted to the Armenian government for discussion in late August. It
will also be submitted to the interested international organizations
(the World Bank, the European Bank of Reconstruction and Development,
the US Agency for International Development), taking into account the
possible participation of these organizations in the market
development program. According to K. Gevorgian, at the suggestion of
the Armenian Prime Minister, KFW Bank assumed the role of the leading
donor organization in the process of Armenia’s mortgage market
development. The German bank will sign an agreement of 7 mln euros
with the Armenian government for the purpose of developing the primary
crediting market. This sum will be spent for implementing the first
stage of the mortgage market development program, during which the
participating commercial banks’ mortgage portfolios in line with
certain standards will be financed. According to K. Gevorgian, these
funds will have a positive impact on the terms of providing mortgage
credits. Particularly, KFW aims to extend the crediting period to at
least 10 years, which will enable to provide loans to the middle class
of the population as well.