SECONDARY MORTGAGE MARKET OPERATOR COMPANY TO BE SET UP IN ARMENIA SOON

ARKA
Apr 9, 2009

YEREVAN, April 9. /ARKA/. A mortgage company – operator of secondary
mortgage market – will be set up in Armenia within a month as per
the concept developed by the country’s Central Bank.

The Press Service of the Central Bank of Armenia (CBA) reported that
best international practice was considered in developing the project.

According to the press release, the company is to be set up as a
credit organization guided by government – private sector cooperation
principle.

The initial founder of the company is the Central Bank that is to
invest 5bln Drams (about $13.3mln) in the company.

Further investments in the company’s authorized stock may be
implemented by Armenian government, financial institutions (banks,
credit organizations, investment companies) and international
prestigious investors, which will bring the fund capital several
times up by the end of this year, says the report.

This way, through the setting up of the mortgage company, Armenian
government intends to have an efficient financial infrastructure for
solving housing issues.

The company will be providing "long money" through securities issues
to refinance mortgage credits. The expected result is improvement of
mortgage loan terms, greater accessibility of mortgage credits due
to lower interest rates and longer pay-back period.

The mortgage20company will also be refinancing social housing
programs.