GOVERNMENT WILL SUBSIDIZE MORTGAGE FOR 5 YEARS ONLY

KarabakhOpen
15-05-2008 11:12:28

The government is likely to subsidize 6 percent of the 12 percent
interest on mortgage for 5 years instead of 20. It is clearly set
down in the mortgage regulations. However, a few months ago Prime
Minister Ara Harutiunyan assured that the government will subsidize
half of the interest rate through the repayment period.

Answering the same question in his news conference two days ago the
head of the government said: "We have no right to make a commitment
for 20 years. Interest rates may change, and we may have to change
our stance.

Since we have no prognosis of the rate of development of banks for
the upcoming twenty years, we allowed banks to revise interest rates
in five years."

He also said recently interest rates on mortgage tend to go down in
the world. Besides, the head of the government said soon salaries
may rise and there may be no need for the government subsidy any more.