ARMENIA HAS ROOM FOR ENLARGING ITS MORTGAGE PORTFOLIO TO AMD 110 OR 120 BILLION
/ARKA/
April 19, 2010
YEREVAN
Armenia has room for enlarging its mortgage portfolio to AMD 110 or 120
billion, Arthur Javadyan, chairman of the central Bank of Armenia said
Monday referring to Armenian specialists and international experts’
opinion.
"Mortgage loans extended by Armenian banks total AMD 83 billion,"
he said.
Speaking about the ~@20-million credit agreement signed between KfW,
German Development Bank, and the Central Bank of Armenia under the
housing financing project, he said that this project costs some 11
billion drams, taking into account current exchange rates.
Javadyan said that banks have already received AMD 4.3 billion through
National Mortgage Company.
"We have another AMD 13 billion, which we hope to distribute within
one and a half or two years," he said.
National Mortgage Company was established on June 16, 2009, by the
central bank’s decision.
The company’s authorized capital amounts to AMD 5 billion.
The company has also additional 12 billion, which has been allocated
from the bailout credit received from Russia for developing mortgage
market.
Besides, AMD 3 billion has been targeted for Affordable Housing for
Young Families program.
"Under this program launched about a month ago, some 200 million
drams have been already refinanced," Javadyan said adding that the
remaining funds would be distributed this year.
On January 29, 2010, Armenian government approved "Affordable Housing
for Young Families" AMD 3-billion program.
Maximal size of a loan to be extended under this program is AMD
16 million.
Loans will be extended at an interest rate no higher than 10.5%,
of which 2% will be subsidized by Armenian government.
It means annual interest rates on loans for young families won’t
exceed 8.5%.
Loans are to be extended for 10 years. ($1 = AMD 394.11).