Central Bank Of Armenia Registers "Housing For Young Families" UCO

CENTRAL BANK OF ARMENIA REGISTERS "HOUSING FOR YOUNG FAMILIES" UCO

ArmInfo
17.02.2010

ArmInfo.The Central Bank of Armenia (CBA) registered a Universal
Credit Organization "Housing for Young Families", Tuesday. The CBA
press-service told ArmInfo that the given decision was taken during
today’s sitting of the CBA Council presided over by CBA Chairman
Artur Javadyan.

To note, the new mortgage company was registered on the basis of the
bill on state target program on providing available housing to young
families. The bill was approved by the Armenian government on 29 Jan
2010. The program is socially-oriented.

Deputy Finance Minister of Armenia Aram Vardanyan has recently
told ArmInfo that the new mortgage company will be opened with an
authorized capital of 3 bln AMD. Under the state mortgage program,
loans for acquisition of housing will be provide all over Armenia. The
value of the property is not to exceed 16 mln AMD, and the requested
prepayment will range from 30% to 35% of the housing value.

The loans will be provided for up to 10 years at a subsidized interest
rate of 8-10% p.a. Contenders for loans under the given state program
are the family couples, whose summary age does not exceed 60 years. At
the same time, either of the persons is not to be older than 35. In
addition, a single parent under 30 may also make use of the program.

To receive a loan, the average monthly budget of young families
should be 300-380 thsd AMD, of them 35% (130-160 thsd AMD at the mean)
are to be monthly spent on redemption of the mortgage.