HSBC BANK ARMENIA INTENDS TO RESUME MORTGAGE CREDITING IN OCTOBER 2009

ArmInfo
2009-08-25 20:28:00

ArmInfo. HSBC Bank Armenia intends to resume mortgage crediting in
October 2009, Chief Executive Officer of HSBC Bank Armenia Tim Slater
told ArmInfo correspondent.

He said that the bank took this decision taking into account the
demand. For instance, last week the bank approved 3 applications for
mortgage loans.

Though the interest in mortgage loans in the market is still low,
but the bank hopes that the refinancing opportunities offered by the
national Mortgage Company will lead to activation.

To note, as a consequence of the global financial and economic crisis,
in early 2009 the commercial banks of Armenia practically stopped
issuing loans for purchase of property. Mortgage loans were mostly
provided within the frames of the German KfW Bank-funded mortgage
program (with AMD financing), the participants in which are 8
commercial banks and 2 universal credit companies.