ARMENIA’S MORTGAGE CREDITING SECTOR NEEDS LONG-TERM FUNDS
ARKA
April 16, 2008
YEREVAN, April 16. /ARKA/. The necessity for long-term funds is one of
the principle challenges for the participants in the mortgage crediting
market, Head of the Financial Policy and Analysis Department, Central
Bank of Armenia (CBA), David Sargsyan stated at an annual meeting of
the Association of Mortgage Market Participants of Armenia.
Pointing out progress on the mortgage market, particularly longer
terms of redemption and lower interest rates, President Sargsyan
stated that the market participants will have to meet some challenges
in the near future.
"The matter concerns the attraction of long-term funds, which is
especially topical in the context of a crisis on the world mortgage
crediting market," he said.
David Sukiasyan, who chaired the Association’s annual meeting, pointed
out that to achieve this goal the participants in Armenia’s mortgage
market elaborated and introduced common standards of crediting.
"It will enable us to receive longer-term funds at lower interest rates
from foreign organizations and enter the secondary market," he said.
The Central Bank of Armenia (CBA) reports that Armenia’s banks had
issued 57.3bln mortgage credits by March 2008 against 53.4bln AMD by
the beginning of this year, their share in the total crediting volume
being 12.98%.
The Association of Mortgage Market Participants of Armenia was founded
in March 2006. At present, it unites 22 organizations: 11 banks
(Araratbank, Armeconombank, Areximbank, Inecobank, Armbusinessbank,
Byblos Bank Armenia, Unibank, ArmSwissbank, Armenian Development
Bank, BTA Investbank, Ardshininvestbank), four insurance companies
(London-Yerevan, Nairi Insurance, Sil Insurance, Ingo Armenia), four
credit institutions (First Mortgage Organization, Washington Capital,
New Horizon and Norvik), as well as three real estate agencies (M&M,
Alta VIP and Orran).