The 1st annual sitting of the Association of Armenia’s Mortgage Market

Arminfo
2007-03-23 16:51:00

The Association of Mortgage Market Participants of Armenia (AMMPA)
held the 1st annual sitting today. Among the discussed topics are:
aspects of development of the mortgage market, annual achievements of
the Association and the future strategies of its activities.

Ashot Osipyan, Chair of the annual sitting, pointed out that market
participants implemented the minimal standards of mortgage quality and
added to experience of joint work between the participants. "If
previously banks and crediting organizations used to interpret
mortgaging differently, now at least the minimal standards for the
participants of the market are set up and a concrete "crediting
culture" is practiced," A. Osipyan said. He added that a joint
mortgage portfolio for 2006 added up 120% – that is too small a number
if compared to rates of the developed states and its share in the
gross domestic product (GDP).

Touching upon the future strategy of the Association A. Osipyan said
that AMMPA is actively participating in establishment of legislation
for the secondary market of mortgaging, as it is a key source for
establishment of necessary long-term resources developing the
market. "The standards of mortgage crediting are to be perfected. New
mortgage instruments are to be set up and professionals in the field
should havr advanced training," he stressed.

Claims of BTA InvestBank and Orran realtor for integration into AMMPA
were met at the sitting. And so, the amount of member-banks reached
10, realtors – 3. On the whole there are 10 commercial banks
within the Association: Armeconombank, Armenian Bank of Development,
Unibank, Areximbank, Armswissbank, INECOBANK, Armbusinessbank, Bank
Ararat, ITB Bank, BTA InvestBAnk, 3 universal crediting organizations
– Washington Capital, The First Mortgage Company and Nor Horizon, 2
insurance companies – Sil Insurance, Nairi Insurance and Prime
Insurance Brokers, and 3 real estate agencies – Alta VIP, M&M
and Orran.

Participants of the sitting were: Representative of Central Bank
Tigran Sargsyan, Head of the State Committee of Real Estate Cadastre
Manuk Vardanyan, Representative of Deutsche bank KfW Karapet
Gevorgyan, Representatives of – European Bank of Reconstruction and
Development, IFC, USAID, ACRA crediting bureau and other.