ARMENIAN PRESIDENT STATED THAT THE STATE WILL ASSIST THE DECREASE OF THE INTEREST RATES FOR MORTGAGE CREDITS

Mediamax News Agency
Nov 16 2007
Armenia

Yerevan, November 16 /Mediamax/. Armenian President Robert Kocharian
believes that "the young families, which have a stable income, have
the opportunity to take mortgage credits".

Mediamax reports that, talking with the journalists after the opening
of the Northern Avenue, Robert Kocharian stated the necessity of
extending the given opportunity.

He noted that the realization of a large-scale construction project,
such as the Northern Avenue, assisted the development of the mortgage
crediting market in Armenia.

"We approved a serious package of laws, and we are very actively
working with the German KfW bank. We are striving to reach the
prolongation of repayment terms for mortgage credits up to 20 years
and the decrease of interest rates and the state will have definite
participation in the given process", Robert Kocharian stated.

The President noted that in the course of the recent 3 years, the
interest rates for mortgage credits decreased and the repayment
terms were prolonged. According to the President, "if we manage to
preserve the given trend in the course of the upcoming 2-3 years,
the interest rates will become reasonable and the credits – long-term".

At the same time Robert Kocharian noted that the banks will be
careful, since "basing on the example of the U.S. market we saw that
the conclusion of a large number of risky and non-secured mortgage
deals led to the collapse of the market".