HYPOTHECARY FUND TO BE SET UP

LRAGIR.AM
17:33:14 – 08/04/2009

On April 8, at the Novosti news centre, the president of the Armenian
Central Bank Artur Javadyan stated that a hypothecary fund is scheduled
to be set with 5 billion drams of capital. "At the present stage,
we are negotiating with the government, I think the government
will get involved and we will enhance the capital. As well as we
are negotiating with the representatives of the private sector. I
hope the capital of the fund will be more than 30 billion drams by
the end of the year and it will convey an impulse to our markets",
stated Artur Javadyan noting that a tangible increase of constructions
will be registered in this result.

Artur Javadyan said that they are negotiating with the German KFW Bank
and, probably, in June Armenia will be allocated 20 million euros,
for hypothecary loans.

Artur Javadyan noted that in general there is a decrease in connection
with the bank loaning in the country. "In comparison with the last
march, when the scale of loaning was 78 billion, this year we had
only 52 billion. But the bank must present stricter conditions in
this global crisis state, and they should be more conservative and
cautious," says Artur Javadyan.