STATE PROGRAM ON PROVIDING YOUNG FAMILIES WITH AFFORDABLE HOUSING IS NOT EFFECTIVE YET
ArmInfo
03.05.2010
ArmInfo. The state program on providing young families of Armenia
with affordable housing is stuck.
To recall, in February 2010 the Central Bank of Armenia registered the
"Affordable Housing for Young Families" UCO on the basis of a bill on
the state target program on providing young families with affordable
housing. The program is socially oriented and it was approved by the
Armenian government on 29 January 2010.
Eduard Oremyan, Executive Director of the Association of Mortgage
Market Participants of Armenia, told ArmInfo that by 1 April 2010 the
"Affordable Housing for Young Families" UCO refinanced loans worth a
total of 31 mln AMD. To reveal the reasons of the program passivity,
intensive research is currently being held, including public opinion
polls among the population and credit organizations. "I think, the
cornerstone reason of the program passivity is the 10-year period
of loan redemption, while the redemption period within the National
Mortgage Company’s refinancing is 20 years",- he stressed and added
that despite the preferential interest rate, the monthly load of the
loan redemption amount is doubled due to the period of redemption.
Moreover, the expert thinks that the 30% prepayment also hinders
the program activity, as the program is meant for mostly regional
borrowers, whose family budgets yield to those of Yerevan residents.
"I believe, the given program should be revised to serve its key idea
of being socially oriented",- said Oremyan.
To note, mortgage specialists have repeatedly expressed their
skeptical attitude towards the given program due to its inadequate
terms of crediting.