MORTGAGE CREDITING TO DOUBLE IN ARMENIA IN 2007 ON LAST YEAR

Noyan Tapan
Sep 6, 2007

YEREVAN, SEPTEMBER 6, NOYAN TAPAN. It has been forecast that the amount
of mortgage crediting will at least double in Armenia by results
of 2007 as compared with last year, the head of the Central Bank of
Armenia (CBA) Financial System Policy and Analyses Department David
Sargsian said at the September 6 press conference.

According to him, mortgage crediting by Armenian banks made 23 bln
770 mln 50 thousand drams (over 57 mln 134 thousand USD) in 2006,
which is more by 114% than in the previous year.

D. Sargsian said that a growth has been registered this year in
crediting of consumer sector, trade, industry and agriculture. In
particular, crediting of industry and agriculture has grown by
27-35%. According to the CBA representative, the crediting growth
rates in these sectors will contunue by late 2007.

To recap, the sum of 39 bln 263 mln 980 thousand drams provided to
industry as of December 31, 2007, has increased by 0.4% in a year,
while 14 bln 196 mln 429 thousand drams to agriculture has increased
by 25.6% in a year.

In the words of D. Sargsian, the average decline in credit interest
rates made 0.5% in January-June 2007. Business crediting was done
at the average interest rate of 15% in 2006, whereas now it makes
14-14.5%, while interest rates of consumer crediting have fallen from
21-21.5% to 19%.