UNLIMITED GOVERNMENT RESOURCE AND 6 PERCENT FOR 5 YEARS
Anahit Danielyan

KarabakhOpen
01-04-2008 12:12:20

At last, the mortgage program has been launched, and the citizens
can already turn to Artsakh Investment Fund to learn whether they
are eligible.

Over the past few days a great number of people have already visited
the office of the Fund.

The director of the Fund Karen Yesayan says the government subsidy of
the mortgage program will be continuous, and there are no financial
problems.

But there are other problems. It turns out that a lot of people want
to buy apartments in new buildings but either have to buy one in an
old building or to wait. Karen Yesayan says most people prefer to
buy an apartment in an old building rather than to wait.

Therefore, the Fund advises not to hurry and wait for another year
when the primary market will be formed. Karen Yesayan says they will
not wait in vain. The government subsidy for the mortgage program is
a spur for construction of housing. Already buildings are being built
in the 38th quarters, in the place of the former shoe factory and
other parts of the city. The head of the Fund also says most people
think apartments in new buildings will be more expensive than in old
buildings. He thinks the price will not differ. The conclusion is
that only builders should be in a hurry who have immense volume of
work and subsequently profit. The problem of supply which does not
meet the demand does not affect those who want to buy a detached house.

The government subsidizes half of 12 percent on mortgage loan and the
first installment. However, according to Point 7.1 of the program the
government subsidy is for the first five years, with a possibility
of reconsideration.

It turns out that in the first 5 years the government subsidizes half
of the 12 percent interest and afterwards the citizen will have to
pay all 12 percent. It means the government subsidy is not guaranteed.

By the way, after the affirmation of the program Prime Minister
Ara Harutiunyan said in answer to the question of Karabakh-Open.com
that the government will subsidize half of the interest till the end
of repayment.

Meanwhile, a few days ago Karen Yesayan, the director of Artsakh
Investment Fund said in five years the government subsidy may be
reviewed because it is possible that the citizen will not need
the subsidy anymore. "Although I think if the borrower needs, the
government will continue to subsidize," Karen Yesayan said.

It is not clear what will happen in five years but the basis for
future decisions will be the given program. According to this program,
the government may suspend subsidy. Changes in the government in five
years should not be ruled out. It is obvious that this program allows
for various interpretations.