NKR MORTGAGE LENDING POLICY IS THE BEST IN THE REGION

Azat Artsakh Daily – Nagorno Karabakh Republic [NKR]
09-02-2007

To solve the problem of housing, two years ago the government drafted
a mortgage lending policy, and even in 2006 200 million drams were
allocated for this purpose. However, since mortgage lending is novelty
in Artsakh, the implementation of this policy proved difficult, and
was delayed. In 2007 another 500 million drams was added to the
previous 200 million. On January 30 the NKR government confirmed the
order of mortgage lending. The policy will be implemented by Artsakh
Development Agency. The size of the loan can be up to 15 million drams
but it should not exceed 80 percent of the value of the apartment or
costs of the construction of a house. The other 20 percent is paid by
the borrower. The term of the loan is 20 years with an annual 6
percent interest.

The borrower must have a monthly income of 20 thousand drams in
Stepanakert and 10 thousand drams in rural areas. A citizen can borrow
mortgage loan only once. In an interview with the Azat Artsakh the
director of the agency Armen Avagian said considering the debates over
the order of mortgage lending, interest on behalf of the population
and numerous inquiries, it was a longed-for policy. `It should be
noted with regard to the terms and conditions that this policy is one
of the best in the region.’

NORAIR HOVSEPIAN.
09-02-2007