Mediamax Agency, Armenia
March 23 2007

In 2006, the volume of mortgage crediting in Armenia made 25,4bln AMD

Yerevan, March 23 /Mediamax/. In 2006, the volume of mortgage
crediting in Armenia made 25,4bln AMD.

Mediamax reports that the Chairman of the Central Bank of Armenia
Tigran Sarkisian said this during the annual meeting of the
Association of mortgage market participants of Armenia. According to
him, it is a low sum for the development of mortgage market of the
country, as in many developed countries mortgage credits make more
than the half of the volume of credit investments, whereas in the
Armenian banks they make only the 10%.

According to Tigran Sarkisian, the main reason for the small specific
weight of mortgage crediting in Armenia is the low average salary of
the population, which does not reach the point of $300, which is
needed to receive a mortgage credit. Among other obstacles, the CB
Chairman noted the short terms of providing mortgage credits.
According to Tigran Sarkisian, the given terms should be increased up
to 20 years. He also noted that the lowering of interest rates of
credit provision will also assist the development of mortgage
crediting in Armenia.

The CB Chairman informed that in the course of 5 years it is planned
that the volume of mortgage crediting in Armenia will increase up to
$1,5bln. This, according to him, will allow increasing the volume of
construction in the country, which is a necessity at present. `80% of
the housing resources of Armenia are in disastrous condition and that
is why the development of construction is urgent’, Tigran Sarkisian
stated.