KFW TO ISSUE EUR 20MLN FOR ARMENIA UNDER THE "STABLE DEVELOPMENT OF MORTGAGE MARKET" PROGRAM
Karen Ghazaryan

"Radiolur"
19.04.2010 16:23

German KfW bank will issue ~@20mln under the loan program of the
German-Armenian Fund for "Stable Development of Mortgage Market." The
Deputy Chairman of KfW, Eva Witt, and the Head of the Central Bank
of Armenia, Arthur Javadyan, signed a corresponding agreement in
Yerevan today.

The loan is provided for the term of 10 years (with 3 years’ grace
period) at a discount interest rate. The loan means are planned to
be fully used in the course of 3 years with application of the basic
principles of first two stages of KfW program mortgage crediting in
Armenia. Nine banks and two credit organizations will benefit from
the program.

Arthur Javadyan reminded that 2 agreements were signed between KfW
and the Armenian Central Bank in 2006 and 2007 on providing a loan
of ~@12mln and a grant at the volume of ~@1.5mln for consultation
purposes to the mortgage program of the German-Armenian Fund.

The loan means, received within the framework of the first two stages
of the program have already been fully used.

Deputy Chairman of KfW Eva Witt stated that, by providing the loan,
the German Bank first of all intends to contribute to the development
of dwelling construction and mortgage market in the regions of Armenia
and this is why the maximum volume of credits, issued within the
framework of the program, will be within the limit of 12mln AMD.