ARMENIAN GOVERNMENT MAKES MORTGAGE LOANS AFFORDABLE TO YOUNG FAMILIES

/ARKA/
May 5, 2009
YEREVAN

Armenia’s Government is undertaking steps to make mortgage loans
affordable to young families, RA Prime Minister Tigran Sargsyan
said Tuesday.

According to the premier, the government plans to offer 25-year
mortgage loans with lower interest rates. To achieve this goal,
Armenia needs additional investments.

"We are currently negotiating with our German partners, as well as the
World Bank over attracting additional investments for this purpose. We
are ready to earmark funds to achieve this goal," the premier added.

Chairman of the Central Bank of Armenia (CBA) Arthur Javadyan
previously stated that the German KfW bank would attract additional
â~B¬20mln for mortgage lending programs in Armenia. He said the local
banks could draw the funds in the national currency if necessary.

Mortgage lending was 13.01% of Armenia’s total loan portfolio in
Q4 2008, with mortgage loans totaling 81.1bln drams. ($1 – 372.56
drams)