WORK ON FORMATION OF SECONDARY MORTGAGE MARKET TO START IN ARMENIA FROM 2007

YEREVAN, MARCH 10, NOYAN TAPAN. A non-profit non-commercial
organization “The Union of Armenian Mortgage Market Participants” has
been set up for the purpose of assisting the development of the
mortgage market in Armenia. The founders of the union are:
Armeconombank, the Armenian Development Bank, ArmSwissBank,
Inecombank, Arminvestbank, Unibank, Ararat Bank, Areximbank;
Washington Capital and First Mortgage Company credit companies; SIL
Insurance, Private Insurance, Nairi Insurance and Prime Insurance
Brokers insurance companies, Alta Vip, M & M, Premier Realty and
Elefant Realty realty agencies. During the constituent assembly on
March 10, Ashot Osipian, Armeconmbank’s Executive Director, pointed
out such primary tasks of the newly established union as the creation
of all the necessary preconditions for efficient operation of the
secondary market of mortgage credits, participation in the strategy
development and improvement of the legislative field, etc. In the
words of Chairman of the Central Bank of Armenia (CBA) Tigran
Sargsian, CBA attaches importance to the formation of the union and
will assist it. He noted that there are two strategies for developing
the mortgage market – ensuring equal rules of game for all market
participants through adoption of mandatory normative acts, or a
voluntary unification of market participants and the development of
common standards. T. Sargsian assured that CBA that considers the
second option as more acceptable will cooperate with the
union. According to him, CBA “will not adopt any normative act related
to the sector without discussing it with the union and receiving a
conclusion about it.” CBA Chairman also attached importance to the
fact of participation of KfW Bank’s Armenian Reprsentative Karapet
Gevorgian in the foundation of the union.