NEWLY FOUNDED UNION ENGAGES IN ARRANGING HYPOTHECARY MARKET
AZG Armenian Daily
14/03/2006
Union of Mortgage Market Participants is founded in Armenia. In
this connection, the first sitting of founders took place today. The
union includes 8 commercial banks, 2 universal credit organizations,
4 insurance companies and 4 real estate companies.
The union is aimed to create preconditions for effective functioning
secondary market of mortgage credits, to elaborate strategy for the
mortgage market’s development, to improve regulation and to study
the experience of developed mortgage markets.
Tigran Sargsian, chairman of RA Central Bank, stated that the union
will represent general interests of professional participants of
the market and create equally acceptable rules for all of them. The
primary market and the relevant infrastructures will be formed in
2006. Sargsian said that donor sources will help increase mortgage
credits in the primary market, while in 2007, they will implement
the project of creating the second mortgage market. At present,
mortgage credits are allocated for 10 years in maximum, while the
minimal stake is 12% annually.
Ashot Osipian, chairman of Armeconombank’s Board, said that they will
discuss the program on development of mortgage market at the first
March 17 sitting of the union. It is decided that each sitting will
be held by a new chairman.
It’s noteworthy that the Union includes Armeconombank, Armenian
Development Bank, Unibank, Areximbank, Armswissbank, INECOBANK,
Arminvestbank, Bank “Ararat,” “Washington Capital” UCO, “First Mortgage
Company” UCO, “SIL Insurance” “Private Insurance,” “Nairi Insurance”
and “Prime Insurance” companies, as well as “Alta VIP,” “M & M,”
“Prime Realty” and “Elephant Realty” agencies.