KFW DEVELOPING ARMENIAN MORTGAGE MARKET

Tert.am
19.04.10

On April 19 an agreement was signed between the President of the
Central Bank of Armenia, Arthur Javadyan, and the Deputy President of
the German KfW bank, Eva Vitt, by which KfW will provide the Central
Bank of Armenia a loan worth 20 million euros.

The initiative is aimed at the development of the Armenia mortgage
market.

Arthur Javadyan said that the loan is allocated for 10 years with
the first three ones on privileged conditions. The percentage rates
of these mortgages will be privileged too: part of them will be
subsidized by the German government.

The principle by which these mortgages will be given to citizens is as
follows: the Armenian trade banks will provide citizens mortgages, and
the Central Bank of Armenia will return those mortgages to them later.

The Armenia trade banks will provide those mortgages at 12%-16%,
and the total amount of each mortgage will be 12 million dram.