IFC Supports Primary Mortgage Market Development in Armenia
11:47 am | February 19, 2010 | Economy
9/ifc
IFC, a member of the World Bank Group, is helping develop the mortgage
market in Armenia by increasing public awareness and consumer
knowledge in mortgage lending. To help people better understand the
benefits and adequately assess the risks of taking mortgage loans,
IFC’s Armenia Banking Market Development Project has published a
Mortgage Borrower Guide.
The Guide is one of the components of IFC advisory services in the
framework of cooperation between IFC/WB and the Central Bank of
Armenia, as well as other key Armenian financial sector participants.
As in many developing countries the growth of mortgage lending in
Armenia has been hindered by a lack of unified market standards,
inadequate legislation, and limited public understanding of mortgage
markets. IFC is pursuing a comprehensive, programmatic approach to
address these issues.
"Developing the mortgage market is directly related to increasing
living standards and expanding financial markets in Armenia," said
Thomas Lubeck, IFC Regional Head, Caucasus. "We are glad to be helping
Armenian individuals understand better one of life’s most important
financial transactions."
The Mortgage Borrower Guide, developed in cooperation with the Armenia
Mortgage Market Participants’ Association, addresses the questions
people might have when applying for a mortgage loan, and provides
explanations of common mortgage-related terms, practices and
procedures. The Guide is available free of charge for current and
future mortgage borrowers in the offices of major commercial banks in
Armenia and in the Armenia Mortgage Market Participants’ Association.
The IFC Armenia Banking Market Development Project is run in
partnership with Austria Development Agency GmbH and the Government of
Netherlands.
Since 2000, IFC has been investing in Armenia to support financial
institutions, small retailers, and the hotel industry, among others,
and implemented advisory projects to improve the business environment
and strengthen the financial sector.
IFC is the only international financial institution focused
exclusively on the private sector, the engine of sustainable
development in emerging markets. Along with IBRD, it is currently
seeking a capital increase to strengthen its ability to create
opportunity for the poor in developing countries-including by
supporting mortgage market development in Armenia.
From: Emil Lazarian | Ararat NewsPress
