VOLUME OF HYPOTHEC MARKET OF ARMENIA TO GROW FROM 30 BLN DRAMS TO 350 BLN DRAMS WITHIN THE NEXT 5 YEARS
ArmInfo
2007-06-26 10:27:00
The volume of the hypothec market of Armenia will grow from 30 bln
drams to 350 bln drams within the next 5 years, Head of RA CB Tigran
Sargsyan said.
He recalled that a programme of development of stable housing financing
market is carried out in Armenia jointly with the German KfW Bank in
order to form a market of hypothec crediting. Moreover, for creation
of the primary market, a number of legislative reforms was carried out,
aimed at implementation of the practice of extrajudicial realization of
deposit and solution of other important tasks. T. Sargsyan said that
the private sector also intends to implement large-scale programmes
in the hypothec market.
According to the data of Ranking of Armenia’s commercial banks,
prepared by the Agency of Rating Marketing Information (ArmInfo),
the portfolio of hypothec credits of RA commercial banks as of
March 31, 2007, made up about $74 mln or about 10% of the total
credit investments, having increased by 83,4% in annual section,
and by 16% – within the first quarter. Nineteen banks operate in
this market. Moreover, the hypothec credits are given to the "First
Hypothec Company" Universal Credit Organization, the portfolio of
hypothec credits of which as of March 31, 2007, made up about $2 mln.
Presently, there are banks which give hypothec credits for 15-20 years
on terms of prepayment of 20% of the acquired housing’s cost. The
minimum interest rate per hypothec credits is equal to 12%.