13:00, 14 July 2009

National Mortgage Company launched in Armenia

As reported by Arthur Dzhavadyan, Chairman of the Central Bank of Armenia, a universal credit organization named "The National Mortgage Company" was founded and started in Armenia with the aim to develop and stimulate the local mortgage market.

According to Mr Dzhavadyan, with this aim in mind, the company plans to refinance the mortgage credits granted by commercial banks. The refinancing limit makes 20 million drams.

So far, an agreement was signed only with the Armbusinessbank; in the month to come, they plan to involve a number of other banks. Presently, the capital of the company makes 17 billion drams.

As to the prospects of further drop of housing prices, the head of the Central Bank has noted that while in the dram expression the price have dropped by 1-7 percent, the drop in US dollar equivalent made up to 30 percent.

Author: Lylyt Ovanisyan

Source: CK correspondent