ARMENIAN CENTRAL BANK TO EARMARK 5 BILLION DRAMS FOR MORTGAGE FUND’S ESTABLISHMENT

ARKA
Dec 19, 2008

YEREVAN, December 29. /ARKA/. The Central Bank of Armenia (CBA) plans
to earmark 5bln drams for the establishment of the first mortgage
fund in the country in 2009, CBA Chairman Arthur Javadyan said today
at a reception in the Central Bank.

Establishment of mortgage funds and companies is among Armenia’s
short-term objectives, the CBA chairman said, pointing out elaboration
of a relevant concept. "Moreover, the Central Bank will assign 5bln
drams from its capital expenditures for the establishment of the
first mortgage fund in 2009," he added.

Twenty-two banks with 367 branches operated in Armenia as of September
30, 2008. Total assets and capital of Armenia’s banks amounted to
954.1bln drams and 214.9bln drams respectively, with their liabilities
reaching 739.2bln drams.

Total assets of local bank are around 27% of the country’s GDP,
with crediting of economy reaching 617.5bln drams in end-2008,
compared to 434.5bln drams earlier this year. Consumer loans totaled
172.5bln drams, with mortgage loans amounting to 81bln drams.($1-
308.01 drams).